limitations specified in Chapter 718 of the Revised Code;...with the provisions and limitations specified in [Chapter 718];" and WHEREAS, ' based on a review of H. B. 5 and model tax

11 -23-15 Corrected version

RECORD OF ORDINANCESCITY OF UPPER ARLINGTON

STATE OF OHIO

ORDINANCE NO. 76-2015

TO AMEND THE TITLE TO CO. CHAPTER 201 - INCOME TAX; TO ADD CO.SECTION 201.90 - COLLECTION AND ENFORCEMENT AFTER JANUARY 1, 2016AND CO. SECTION 201.91 - SAVINGS CLAUSE; TO ADD CO. CHAPTER 203 -INCOME TAX CODE EFFECTIVE JANUARY 1, 2016; TO AMEND CO. SECTION202.99 - PENALTIES; TO RENUMBER CO. CHAPTER 202 - TRANSIENTOCCUPANCY TAX; AND TO AMEND CO. CHAPTER 156 - BOARD OF TAXAPPEALS; RELATIVE TO THE FINANCE AND REVENUE CODE AND THEADMINISTRATIVE CODE TO CONFORM TO CHANGES IN STATE LAW

WHEREAS, Article XIII, Section 6 of the Ohio Constitution provides that the GeneralAssembly may restrict a municipality's power of taxation to the extentnecessary to prevent abuse of such power, and Article XVIII, Section 13of the Ohio Constitution states that "laws may be passed to limit thepowers of municipalities to levy taxes and incur debts for localpurposes;" and

WHEREAS, the General Assembly enacted H. B. 5 in December 2014, andmandated that municipal income tax codes be amended by January 1,2016 such that any income or withholding tax is "levied in accordancewith the provisions and limitations specified in [Chapter 718];" and

WHEREAS, ' based on a review of H. B. 5 and model tax codes prepared by theRegional Income Tax Agency and the Ohio Municipal League staff isrecommending the adoption of an entirely new tax code to be effectiveJanuary 1, 2016 for the purpose of complying with the provisions and

••;.', limitations specified in Chapter 718 of the Revised Code;

NOW, THEREFORE, BE IT ORDAINED by the Council of the City of UpperArlington, Ohio:

SECTION 1: That the title of CO. Chapter 201 - Income Tax is hereby amended toread, as follows:

CHAPTER 201 - INCOME TAX FOR TAX YEARS PRIOR TO JANUARY 1. 2016

Ordinance No. 76-2015Page 2

SECTION 2: That CO. Chapter 201 - Income Tax for Tax Years prior to January 1,2016 is hereby amended by adding new sections CO. 201.90 -Collection and Enforcement after January 1, 2016 and CO. 201.91 -Savings Clause to read, as follows:

§201.90- COLLECTION AND ENFORCEMENT AFTER JANUARY 1. 2016

(A) This chapter shall continue in full force and effect insofar as the lew of taxes is

concerned until December 31. 2015. and insofar as the collection of taxes levied

hereunder and actions and proceedings for collecting anv tax so levied or enforcing anv

provisions of this chapter are concerned, it shall continue in full force and effect until all of

the taxes levied prior to January 1. 2016 are fully paid and anv and all suits and

prosecutions for the collection of taxes or for the punishment of violations of this chapter

have been fully terminated, subject to the limitations contained in Section 201.18.

(B) Annual returns due for all or anv part of the last effective year of this chapter shall

be due on the date provided in Section 201.08 as though the same were continuing.

(C) The penalties, interest, and fees provided in Sections 201.22. 201.23. 201.24. and

201.25 shall apply to

(1) Anv return reguired to be filed under this chapter for taxable vears beginning prior to

January 1. 2016: and

(2) Anv income tax, estimated income tax, and withholding tax reguired to be paid or

remitted to the City prior to January 1. 2016.

§ 201.91 - SAVINGS CLAUSE

If anv sentence, clause, section or part of this chapter, or anv tax imposed against, or

exemption from tax granted to. anv taxpayer or forms of income specified herein is found

to be unconstitutional, illegal or invalid, such unconstitutionalitv. illegality, or invalidity shall

affect only such clause, sentence, section or part of this chapter so found and shall not

affect or impair anv of the remaining provisions, sentences, clauses, sections or other

parts of this chapter. It is hereby declared to be the intention of City Council that this

chapter would have been adopted had such unconstitutional, illegal or invalid sentence,

clause, section or part thereof not been included in this chapter.

Ordinance No. 76-2015

Page 3

SECTION 3: That CO. Part 2 - Revenue and Finance Code is hereby amended byadding new CO. Chapter 203 - Income Tax Effective January 1, 2016to read, as follows:

CHAPTER 203 - INCOME TAX EFFECTIVE JANUARY 1, 2016

SECTION 203.1 AUTHORITY TO LEVY TAX; PURPOSE OF TAX.

(A) To provide funds for the purposes of general municipal operations, capitalimprovements, maintenance and repair of equipment, streets and other physicalproperties, purchase of new equipment, extension and enlargement of municipal servicesand facilities, and the payment of principal and interest on debt issued by the city.there ishereby levied an annual municipal income tax on income, qualifying wages, commissionsand other compensation, and on net profitsas hereinafter provided.

(B)(1) The annual tax is levied at a rate of 2.5% (two and one-half percent). The tax islevied at a uniform rate on all persons residing in or earning or receiving income in theCity. The tax is levied on income, qualifying wages, commissions and othercompensation, and on net profits as hereinafter provided in Section 203.3 of this Chapterand other sections as they may apply.

(2) The funds collected under the provisions of this chapter shall be applied for thefollowing purpose and in the following order, to wit:

(a) Such part thereof as shall be necessary to defray all costs of collecting thetaxes levied by this chapter and enforcing the provisions hereof.

(b) Such part thereof as council may appropriate to the general fund for thepurpose of paying the cost of general municipal operations.

(c) Such part thereof as council may appropriate for the purpose of paying thecost of maintenance of, and the purchase of new equipment, including motorizedequipment.

(d) Such part thereof as the council may appropriate for the purpose of payingthe cost of the acquisition, construction, repair and/or maintenance of streets and/or otherpermanent improvements.

(e)(i) In any event, at least twenty percent (20%) of all monies collected under thischapter, shall be deposited in the Capital Asset Management Fund and shall be dedicatedto capital improvements, the maintenance and repair of streets and other physicalproperties, and the payment of principal and interest on debt issued by the city for suchpurposes. Interest and principal due on bonds and notes issued for the purposesdescribed in the preceding sentence in excess of the one percent (1%) limitation asauthorized by Article XII, Section 2, of the Constitution of the State of Ohio, shall be firstpaid from said Fund before any payment may be made on interest or principal due onother notes or bonds. Provided, however, that in any year when monies are used to payinterest or principal on bonds or notes other than those issued in excess of the one percent


(1%) limitation, as authorized by Article XII, Section 2, of the Constitution of the State ofOhio, the additional monies accruing to the general fund thereby shall be used only forpermanent improvements as defined in Ohio Revised Code § 133.01. No monies derivedfrom the previously mentioned twenty percent (20%) of all monies collected under thischapter shall be used for any purpose other than capital improvements, maintenance andrepair of streets and other physical properties, and the payment of principal and interest ondebt issued by the city for such purposes.

(ii) Provided, further, that additional monies, meaning monies in excess of theminimum twenty percent (20%) of income tax revenues required to be deposited in theCapital Asset Management Fund pursuant to division (E)(1) of this section, may bedeposited in the Capital Asset Management Fund and may be appropriated to pay forpermanent improvements, as defined in Ohio Revised Code § 133.01, to pay principal andinterest on debt issued by the city for such permanent improvements, and to pay costs ofpermanent improvements, as described in Ohio Revised Code § 133.15. Additional moniesmay also be appropriated to defray the cost of engineering plans and specifications.

Except with regard to interest and principal due on bonds and notes issued inexcess of the one percent (1%) limitation, as authorized by Article XII, Section 2, of theConstitution of the State of Ohio, no monies from the Fund shall be expended withoutspecial authorization of city council.

(C) The tax on income and the withholding tax established by this Chapter 203 areauthorized by Article XVIII, Section 3 of the Ohio Constitution. The tax is levied inaccordance with, and is intended to be consistent with, the provisions and limitations ofOhio Revised Code Chapter 718 (ORC 718).

SECTION 203.2 DEFINITIONS.

(A) Any term used in this chapter that is not otherwise defined in this chapter has the samemeaning as when used in a comparable context in laws of the United States relating tofederal income taxation or in Title LVII of the Ohio Revised Code, unless a differentmeaning is clearly required. If a term used in this chapter that is not otherwise defined inthis chapter is used in a comparable context in both the laws of the United States relatingto federal income tax and in Title LVII of the Ohio Revised Code and the use is not

consistent, then the use of the term in the laws of the United States relating to federalincome tax shall control over the use of the term in Title LVII of the Ohio Revised Code.

(B) The singular shall include the plural, and the masculine shall include the feminine andthe gender-neutral.

(C) As used in this chapter:

(1) "Adjusted federal taxable income," for a person required to file as a C corporation, orfor a person that has elected to be taxed as a C corporation under (C)(24)(d) of thisdivision, means a C corporation's federal taxable income before net operating losses andspecial deductions as determined under the Internal Revenue Code, adjusted as follows:


Page 5

(a) Deduct intangible income to the extent included in federal taxable income. Thededuction shall be allowed regardless of whether the intangible income relates to assetsused in a trade or business or assets held for the production of income.

(b) Add an amount equal to five percent (5%) of intangible income deducted underdivision (C)(1)(a) of this section, but excluding that portion of intangible income directlyrelated to the sale, exchange, or other disposition of property described in Section 1221 ofthe Internal Revenue Code;

(c) Add any losses allowed as a deduction in the computation of federal taxableincome if the losses directly relate to the sale, exchange, or other disposition of an assetdescribed in Section 1221 or 1231 of the Internal Revenue Code;

(d) (i) Except as provided in (C)(1)(d)(ii) of this section, deduct income and gainincluded in federal taxable income to the extent the income and gain directly relate to thesale, exchange, or other disposition of an asset described in Section 1221 or 1231 of theInternal Revenue Code;

(ii) Division (C)(1)(d)(i) of this section does not apply to the extent the incomeor gain is income or gain described in Section 1245 or 1250 of the Internal RevenueCode.

(e) Add taxes on or measured by net income allowed as a deduction in thecomputation of federal taxable income;

(f) In the case of a real estate investment trust or regulated investment company,add all amounts with respect to dividends to, distributions to, or amounts set aside for orcredited to the benefit of investors and allowed as a deduction in the computation offederal taxable income;

(g) Deduct, to the extent not otherwise deducted or excluded in computing federaltaxable income, any income derived from a transfer agreement or from the enterprisetransferred under that agreement under Section 4313.02 of the Ohio Revised Code;

(h) (i) Except as limited by divisions (C)(1)(h)(ii), (iii), and (iv) of this section,deduct any net operating loss incurred by the person in a taxable year beginning on orafter January 1, 2017. The amount of such net operating loss shall be deducted from netprofit that is reduced by exempt income to the extent necessary to reduce municipaltaxable income to zero, with any remaining unused portion of the net operating loss carriedforward to not more than five consecutive taxable years following the taxable year in whichthe loss was incurred, but in no case for more years than necessary for the deduction to befully utilized.

(ii) No person shall use the deduction allowed by division (C)(1)(h) of thissection to offset qualifying wages.

(a) For taxable years beginning in 2018, 2019, 2020, 2021, or 2022, aperson may not deduct, for purposes of an income tax levied by a municipal

Ordinance No. 76-2015 u ;Page 6

corporation that levies an income tax'before January 1, 2016, more than fiftypercent (50%) of the amount of the deduction otherwise allowed by division(C)(1)(h)(i) of this section.

(b) For taxable years beginning in 2023 or thereafter, a person maydeduct, for purposes of an income tax levied by a municipal corporation thatlevies an income tax before January 1, 2016, the full amount allowed by(C)(1)(h)(i) of this section.

(iv) Any pre-2017 net operating loss carryforward deduction that is availablemust be utilized before a taxpayer may deduct any amount pursuant to (C)(1)(h) ofthis section.

(v) Nothing in division (C)(1)(h)(iii)(a) of this section precludes a person fromcarrying forward, use with respect to any return filed for a taxable year beginningafter 2018, any amount of net operating loss that was not fully utilized by operationof division (C)(1)(h)(iii)(a) of this section. To the extent that an amount of netoperating loss that was not fully utilized in one or more taxable years by operation ofdivision (C)(1)(h)(iii)(a) of this section is carried forward for use with respect to areturn filed for a taxable year beginning in 2019, 2020, 2021, or 2022, the limitationdescribed in division (C)(1)(h)(iii)(a) of this section shall apply to the amount carriedforward.

(i) Deduct any net profit of a pass-through entity owned directly or indirectly by thetaxpayer and included in the taxpayer's federal taxable income unless an affiliated group ofcorporations includes that net profit in the group's federal taxable income in accordancewith division (V)(3)(b) of Section 203.5.

(j) Add any loss incurred by a pass-through entity owned directly or indirectly by thetaxpayer and included in the taxpayer's federal taxable income unless an affiliated group ofcorporations includes that loss in the group's federal taxable income in accordance withdivision (V)(3)(b) of Section 203.5.

(k) If the taxpayer is not a C corporation, is not a disregarded entity that has madean election described in division (C)(48)(b) of this section, is not a publicly tradedpartnership that has made the election described in division (C)(24)(d) of this section, andis not an individual, the taxpayer shall compute adjusted federal taxable income under thissection as if the taxpayer were a C corporation, except guaranteed payments and othersimilar amounts paid or accrued to a partner, former partner, shareholder, formershareholder, member, or former member shall not be allowed as a deductible expenseunless such payments are in consideration for the use of capital and treated as payment ofinterest under Section 469 of the Internal Revenue Code or United States treasuryregulations. Amounts paid or accrued to a qualified self-employed retirement plan withrespect to a partner, former partner, shareholder, former shareholder, member, or formermember of the taxpayer, amounts paid or accrued to or for health insurance for a partner,former partner, shareholder, former shareholder, member, or former member, andamounts paid or accrued to or for life insurance for a partner, former partner, shareholder,former shareholder, member, or former member shall not be allowed as a deduction.


Page 7

(I) Nothing in division (C)(1) of this section shall be construed as allowing thetaxpayer to add or deduct any amount more than once or shall be construed as allowingany taxpayer to deduct any amount paid to or accrued for purposes of federal self-employment tax.

(2) (a) "Assessment" means a written finding by the Tax Administrator that a personhas underpaid municipal income tax, or owes penalty and interest, or any combination oftax, penalty, or interest, to the municipal corporation that commences the person's timelimitation for making an appeal to the Upper Arlington Board of Tax Review pursuant toSection 203.21, and has "ASSESSMENT" written in all capital letters at the top of suchfinding.

(b) "Assessment" does not include a notice denying a request for refund issuedunder division (C)(3) of Section 203.9, a billing statement notifying a taxpayer of current orpast-due balances owed to the municipal corporation, a Tax Administrator's request foradditional information, a notification to the taxpayer of mathematical errors, or a TaxAdministrator's other written correspondence to a person or taxpayer that does not meetthe criteria prescribed by division (C)(2)(a) of this section.

(3) "Audit" means the examination of a person or the inspection of the books, records,memoranda, or accounts of a person, ordered to appear before the Tax Administrator, forthe purpose of determining liability for a municipal income tax.

(4) "Upper Arlington Board of Tax Review" means the entity created under Section203.21.

(5) "Calendar quarter" means the three-month period ending on the last day of March,June, September, or December.

(6) "Casino operator" and "casino facility" have the same meanings as in Section3772.01 of the Ohio Revised Code.

(7) "Certified mail," "express mail," "United States mail," "postal service," and similarterms include any delivery service authorized pursuant to Section 5703.056 of the OhioRevised Code.

(8) "Disregarded entity" means a single member limited liability company, a qualifyingsubchapter S subsidiary, or another entity if the company, subsidiary, or entity is adisregarded entity for federal income tax purposes.

(9) "Domicile" means the true, fixed, and permanent home of a taxpayer and to which,whenever absent, the taxpayer intends to return. A taxpayer may have more than oneresidence but not more than one domicile.

(10) "Employee" means an individual who is an employee for federal income taxpurposes.

(11) "Employer" means a person that is an employer for federal income tax purposes.


(12) "Exempt income" means all of the following:

(a) The military pay or allowances of members of the armed forces of the UnitedStates or members of their reserve components, including the national guard of any state.

(b) Intangible income. However, a municipal corporation that taxed any type ofintangible income on March 29, 1988, pursuant to Section 3 of S.B. 238 of the 116thgeneral assembly, may continue to tax that type of income if a majority of the electors ofthe municipal corporation voting on the question of whether to permit the taxation of thattype of intangible income after 1988 voted in favor thereof at an election held on November8,1988.

(c) Social security benefits, railroad retirement benefits, unemploymentcompensation, pensions, retirement benefit payments, payments from annuities, andsimilar payments made to an employee or to the beneficiary of an employee under aretirement program or plan, disability payments received from private industry or local,state, or federal governments or from charitable, religious or educational organizations,and the proceeds of sickness, accident, or liability insurance policies. As used in division(C)(12)(c) of this section, "unemployment compensation" does not include supplementalunemployment compensation described in Section 3402(o)(2) of the Internal RevenueCode.

(d) The income of religious, fraternal, charitable, scientific, literary, or educationalinstitutions to the extent such income is derived from tax-exempt real estate, tax-exempttangible or intangible property, or tax-exempt activities.

(e) Compensation paid under Section 3501.28 or 3501.36 of the Ohio RevisedCode to a person serving as a precinct election official to the extent that suchcompensation does not exceed $1,000 for the taxable year. Such compensation in excessof $1,000 for the taxable year may be subject to taxation by a municipal corporation. Amunicipal corporation shall not require the payer of such compensation to withhold any taxfrom that compensation.

(f) Dues, contributions, and similar payments received by charitable, religious,educational, or literary organizations or labor unions, lodges, and similar organizations;

(g) Alimony and child support received.

(h) Compensation for personal injuries or for damages to property from insuranceproceeds or otherwise, excluding compensation paid for lost salaries or wages orcompensation from punitive damages.

(i) Income of a public utility when that public utility is subject to the tax levied underSection 5727.24 or 5727.30 of the Ohio Revised Code. Division (C)(12)(i) of this sectiondoes not apply for purposes of Chapter 5745 of the Ohio Revised Code.

0) Gains from involuntary conversions, interest on federal obligations, items ofincome subject to a tax levied by the state and that a municipal corporation is specifically


Page 9

prohibited by law from taxing, and income of a decedent's estate during the period ofadministration except such income from the operation of a trade or business.

(k) Compensation or allowances excluded from federal gross income under Section107 of the Internal Revenue Code.

(I) Employee compensation that is not qualifying wages as defined in division(C)(35) of this section.

(m) Compensation paid to a person employed within the boundaries of a UnitedStates air force base under the jurisdiction of the United States air force that is used for thehousing of members of the United States air force and is a center for air force operations,unless the person is subject to taxation because of residence or domicile. If thecompensation is subject to taxation because of residence or domicile, tax on such incomeshall be payable only to the municipal corporation of residence or domicile.

(n) An S corporation shareholder's share of net profits of the S corporation, otherthan any part of the share of net profits that represents wages as defined in Section3121(a) of the Internal Revenue Code or net earnings from self-employment as defined inSection 1402(a) of the Internal Revenue Code.

(o) A portion of the income earned by individuals under eighteen years of age to thesame extent authorized under Section 201.07(F) of the Codified Ordinances adopted bythe City before January 1, 2016, specifically exempting the personal earnings of individualsunder eighteen years of age.

(p) (i) Except as provided in divisions (C)(12)(p)(ii), (iii), and (iv) of this section,qualifying wages described in division (C)(2) or (5) of Section 203.4 to the extent thequalifying wages are not subject to withholding for the City undereitherof those divisions.

(ii) The exemption provided in division (C)(12)(p)(i) of this section does notapply with respect to the municipal corporation in which the employee resided at thetime the employee earned the qualifying wages.

The exemption provided in division (C)(12)(p)(i) of this section does notapply to qualifying wages that an employer elects to withhold under division(C)(4)(b) of Section 203.4.

(iv) The exemption provided in division (C)(12)(p)(i) of this section does notapply to qualifying wages if both of the following conditions apply:

(a) For qualifying wages described in division (C)(2) of Section 203.4,the employee's employer withholds and remits tax on the qualifying wages tothe municipal corporation in which the employee's principal place of work issituated, or, for qualifying wages described in division (C)(5) of Section203.4, the employee's employer withholds and remits tax on the qualifyingwages to the municipal corporation in which the employer's fixed location islocated;


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(b) The employee receives a refund of the tax described in division(C)(12)(p)(iv)(a) of this section on the basis of the employee not performingservices in that municipal corporation.

(q) (i) Except as provided in division (C)(12)(q)(ii) or (iii) of this section,compensation that is not qualifying wages paid to a nonresident individual for personalservices performed in the City on not more than 20 days in a taxable year.

(ii) The exemption provided in division (C)(12)(q)(ii) of this section does notapply under either of the following circumstances:

(a) The individual's base of operation is located in the municipalcorporation.

(b) The individual is a professional athlete, professional entertainer, orpublic figure, and the compensation is paid for the performance of services inthe individual's capacity as a professional athlete, professional entertainer, orpublic figure. For purposes of division (C)(12)(q)(ii)(b) of this section,"professional athlete," "professional entertainer," and "public figure" have thesame meanings as in Section 203.4 (C).

(iii) Compensation to which division (C)(12)(q) of this section applies shall betreated as earned or received at the individual's base of operation. If the individualdoes not have a base of operation, the compensation shall be treated as earned orreceived where the individual is domiciled.

(iv) For purposes of division (C)(12)(q) of this section, "base of operation"means the location where an individual owns or rents an office, storefront, or similarfacility to which the individual regularly reports and at which the individual regularlyperforms personal services for compensation.

(r) Compensation paid to a person for personal services performed for a politicalsubdivision on property owned by the political subdivision, regardless of whether thecompensation is received by an employee of the subdivision or another person performingservices for the subdivision under a contract with the subdivision, if the property on whichservices are performed is annexed to a municipal corporation pursuant to Section 709.023of the Ohio Revised Code on or after March 27, 2013, unless the person is subject to suchtaxation because of residence. If the compensation is subject to taxation because ofresidence, municipal income tax shall be payable only to the municipal corporation ofresidence.

(s) Income the taxation of which is prohibited by the constitution or laws of theUnited States.

(t) Any item of income that is exempt income of a pass-through entity under division(C) of this section is exempt income of each owner of the pass-through entity to the extentof that owner's distributive or proportionate share of that item of the entity's income.


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(13) "Form 2106" means internal revenue service form 2106 filed by a taxpayer pursuantto the Internal Revenue Code.

(14) "Generic form" means an electronic or paper form that is not prescribed by aparticular municipal corporation and that is designed for reporting taxes withheld by anemployer, agent of an employer, or other payer, estimated municipal income taxes, orannual municipal income tax liability or for filing a refund claim.

(15) "Gross receipts" means the total revenue derived from sales, work done, or servicerendered.

(16) "Income" means the following:

(a) (i) For residents, all income, salaries, qualifying wages, commissions, andother compensation from whatever source earned or received by the resident, includingthe resident's distributive share of the net profit of pass-through entities owned directly orindirectly by the resident and any net profit of the resident.-except as provided in (C)(24)(d)of this division.

(ii) For the purposes of division (C)(16)(a)(i) of this section:

(a) Any net operating loss of the resident incurred in the taxable yearand the resident's distributive share of any net operating loss generated inthe same taxable year and attributable to the resident's ownership interest ina pass-through entity shall be allowed as a deduction, for that taxable yearand the following five taxable years, against any other net profit of theresident or the resident's distributive share of any net profit attributable to theresident's ownership interest in a pass-through entity until fully utilized,subject to division (C)(16)(a)(iv) of this section;

(b) The resident's distributive share of the net profit of each pass-through entity owned directly or indirectly by the resident shall be calculatedwithout regard to any net operating loss that is carried forward by that entityfrom a prior taxable year and applied to reduce the entity's net profit for thecurrent taxable year.

Division (C)(16)(a)(ii) of this section does not apply with respect to anynet profit or net operating loss attributable to an ownership interest in an Scorporation unless shareholders' shares of net profits from S corporations aresubject to tax in the municipal corporation as provided in division(C)(12)(n) or(C)(16)(e) of this section.

(iv) Any amount of a net operating loss used to reduce a taxpayer's net profitfor a taxable year shall reduce the amount of net operating loss that may be carriedforward to any subsequent year for use by that taxpayer. In no event shall thecumulative deductions for all taxable years with respect to a taxpayer's netoperating loss exceed the original amount of that net operating loss available to thattaxpayer.


(b) In the case of nonresidents, all income, salaries, qualifying wages, commissions,and other compensation from whatever source earned or received by the nonresident forwork done, services performed or rendered, or activities conducted in the municipalcorporation, including any net profit of the nonresident, but excluding the nonresident'sdistributive share of the net profit or loss of only pass-through entities owned directly orindirectly by the nonresident.

(c) For taxpayers that are not individuals, net profit of the taxpayer;

(d) Lottery, sweepstakes, gambling and sports winnings, winnings from games ofchance, and prizes and awards. If the taxpayer is a professional gambler for federalincome tax purposes, the taxpayer may deduct related wagering losses and expenses tothe extent authorized under the Internal Revenue Code and claimed against suchwinnings.

(17) "Intangible income" means income of any of the following types: income yield,interest, capital gains, dividends, or other income arising from the ownership, sale,exchange, or other disposition of intangible property including, but not limited to,investments, deposits, money, or credits as those terms are defined in Chapter 5701 of theOhio Revised Code, and patents, copyrights, trademarks, tradenames, investments in realestate investment trusts, investments in regulated investment companies, and appreciationon deferred compensation. "Intangible income" does not include prizes, awards, or otherincome associated with any lottery winnings, gambling winnings, or other similar games ofchance.

(18) "Internal Revenue Code" has the same meaning as in Section 5747.01 of the OhioRevised Code.

(19) "Limited liability company" means a limited liability company formed under Chapter1705 of the Ohio Revised Code or under the laws of another state.

(20) "Municipal corporation" includes a joint economic development district or jointeconomic development zone that levies an income tax under Section 715.691 , 715.70 ,715.71 , or 715.74 of the Ohio Revised Code.

(21) (a) "Municipal taxable income" means the following:

(i) For a person other than an individual, income reduced by exempt incometo the extent otherwise included in income and then, as applicable, apportioned orsitused to the City under Section 203.3, and further reduced by any pre-2017 netoperating loss carryforward available to the person for the City.

(ii) (a) For an individual who is a resident of the City, income reduced byexempt income to the extent otherwise included in income, then reduced asprovided in division (C)(21)(b) of this section, and further reduced by any pre-2017 net operating loss carryforward available to the individual for themunicipal corporation.


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(b) For an individual who is a nonresident of the City, income reducedby exempt income to the extent otherwise included in income and then, asapplicable, apportioned or sitused to the municipal corporation under Section203.3, then reduced as provided in division (C)(21)(b) of this section, andfurther reduced by any pre-2017 net operating loss carryforward available tothe individual for the City.

(b) In computing the municipal taxable income of a taxpayer who is an individual,the taxpayer may subtract, as provided in division (C)(21)(a)(ii)(a) or (C)(21)(b) of thissection, the amount of the individual's employee business expenses reported on theindividual's form 2106 that the individual deducted for federal income tax purposes for thetaxable year, subject to the limitation imposed bySection 67 of the Internal Revenue Code.For the municipal corporation in which the taxpayer is a resident, the taxpayer may deductall such expenses allowed for federal income tax purposes, but to the extent the expensesdo not relate to exempt income. For a municipal corporation in which the taxpayer is not aresident, the taxpayer may deduct such expenses only to the extent the expenses arerelated to the taxpayer's performance of personal services in that nonresident municipalcorporation and are not related to exempt income.

(22) "Municipality" means the City of Upper Arlington. If the word is capitalized, it isreferring to the City of Upper Arlington. If not capitalized, it is referring to a municipalcorporation other than the City of Upper Arlington.

(23) "Net operating loss" means a loss incurred by a person in the operation of a trade orbusiness. "Net operating loss" does not include unutilized losses resulting from basislimitations, at-risk limitations, or passive activity loss limitations.

(24) (a) "Net profit" for a person other than an individual means adjusted federaltaxable income.

(b) "Net profit" for a person who is an individual means the individual's net profitrequired to be reported on schedule C, schedule E, or schedule F reduced by any netoperating loss carried forward. For the purposes of this section, the net operating losscarried forward shall be calculated and deducted in the same manner as provided indivision (C)(1 )(h) of this section.

(c) For the purposes of this chapter, and notwithstanding division (C)(24)(a) of thissection, net profit of a disregarded entity shall not be taxable as against that disregardedentity, but shall instead be included in the net profit of the owner of the disregarded entity.

(d) A publicly traded partnership that is treated as a partnership for federal incometax purposes, and that is subject to tax on its net profits by the City, may elect to be treatedas a C corporation for the City. The election shall be made on the annual return for theCity. The City will treat the publicly traded partnership as a C corporation if the election isso made.

(25) "Nonresident" means an individual that is not a resident of the City.


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(26) "Ohio Business Gateway" means the online computer network system, createdunder Section 125.30 of the Ohio Revised Code, that allows persons to electronically filebusiness reply forms with state agencies and includes any successor electronic filing andpayment system.

(27) "Other payer" means any person, other than an individual's employer or theemployer's agent, that pays an individual any amount included in the federal gross incomeof the individual. "Other payer" includes casino operators and video lottery terminal salesagents.

(28) "Pass-through entity" means a partnership not treated as an association taxable asa C corporation for federal income tax purposes, a limited liability company not treated asan association taxable as a C corporation for federal income tax purposes, an Scorporation, or any other class of entity from which the income or profits of the entity aregiven pass-through treatment for federal income tax purposes. "Pass-through entity" doesnot include a trust, estate, grantor of a grantor trust, or disregarded entity.

(29) "Pension" means any amount paid to an employee or former employee that isreported to the recipient on an IRS form 1099-R, or successor form. Pension does notinclude deferred compensation, or amounts attributable to nonqualified deferredcompensation plans, reported as FICA/Medicare wages on an IRS form W-2, Wage andTax Statement, or successor form.

(30) "Person" includes individuals, firms, companies, joint stock companies, businesstrusts, estates, trusts, partnerships, limited liability partnerships, limited liability companies,associations, C corporations, S corporations, governmental entities, and any other entity.

(31) "Postal service" means the United States postal service.

(32) "Postmark date," "date of postmark," and similar terms include the date recordedand marked in the manner described in division (B)(3) of Section 5703.056 of the OhioRevised Code.

(33) (a) "Pre-2017 net operating loss carryforward" means any net operating lossincurred in a taxable year beginning before January 1, 2017, to the extent such loss waspermitted, by a resolution or ordinance of the municipal corporation that was adopted bythe municipal corporation before January 1, 2016, to be carried forward and utilized tooffset income or net profitgenerated in such municipal corporation in future taxable years.

(b) For the purpose of calculating municipal taxable income, any pre-2017 netoperating loss carryforward may be carried forward to any taxable year, including taxableyears beginning in 2017 or thereafter, for the number of taxable years provided in theresolution or ordinance or until fully utilized, whichever is earlier.

(34) "Publicly traded partnership" means any partnership, an interest in which isregularly traded on an established securities market. A "publicly traded partnership" mayhave any number of partners.


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(35) "Qualifying wages" means wages, as defined in Section 3121(a) of the InternalRevenue Code, without regard to any wage limitations, adjusted as follows:

(a) Deduct the following amounts:

(i) Any amount included in wages if the amount constitutes compensationattributable to a plan or program described in Section 125 of the Internal RevenueCode.

(ii) Any amount included in wages if the amount constitutes payment onaccount of a disability related to sickness or an accident paid by a party unrelated tothe employer, agent of an employer, or other payer.

Any amount included in wages that is exempt income.

(b) Add the following amounts:

(i) Any amount not included in wages solely because the employee wasemployed by the employer before April 1,1986.

(ii) Any amount not included in wages because the amount arises from thesale, exchange, or other disposition of a stock option, the exercise of a stock option,or the sale, exchange, or other disposition of stock purchased under a stock optionand the municipal corporation has not, by resolution or ordinance, exempted theamount from withholding and tax adopted before January 1, 2016. Division(C)(35)(b)(ii) of this section applies only to those amounts constituting ordinaryincome.

Any amount not included in wages if the amount is an amount describedin section 401 (k), 403(b), or 457 of the Internal Revenue Code. Division(C)(35)(b)(ii) of this section applies only to employee contributions and employeedeferrals.

(iv) Any amount that is supplemental unemployment compensation benefitsdescribed in Section 3402(o)(2) of the Internal Revenue Code and not included inwages.

(v) Any amount received that is treated as self-employment income forfederal tax purposes in accordance with Section 1402(a)(8) of the Internal RevenueCode.

(vi) Any amount not included in wages if all of the following apply:

(a) For the taxable year the amount is employee compensation that isearned outside the United States and that either is included in the taxpayer'sgross income for federal income tax purposes or would have been includedin the taxpayer's gross income for such purposes if the taxpayer did not electto exclude the income under Section 911 of the Internal Revenue Code;


(b) For no preceding taxable year did the amount constitute wages asdefined in Section 3121(a) of the Internal Revenue Code;

(c) For no succeeding taxable year will the amount constitute wages;and

(d) For any taxable year the amount has not otherwise been added towages pursuant to either division (C)(35)(b) of this section or Section 203.4,as that section existed before the effective date of H.B. 5 of the 130thGeneral Assembly, March 23, 2015.

(36) "Related entity" means any of the following:

(a) An individual stockholder, or a member of the stockholder's family enumeratedin Section 318 of the Internal Revenue Code, if the stockholder and the members of thestockholder's family own directly, indirectly, beneficially, or constructively, in the aggregate,at least fifty percent (50%) of the value of the taxpayer's outstanding stock;

(b) A stockholder, or a stockholder's partnership, estate, trust, or corporation, if thestockholder and the stockholder's partnerships, estates, trusts, or corporations owndirectly, indirectly, beneficially, or constructively, in the aggregate, at least fifty percent(50%) of the value of the taxpayer's outstanding stock;

(c) A corporation, or a party related to the corporation in a manner that wouldrequire an attribution of stock from the corporation to the party or from the party to thecorporation under division (C)(36)(d) of this section, provided the taxpayer owns directly,indirectly, beneficially, or constructively, at least fifty percent of the value of thecorporation's outstanding stock;

(d) The attribution rules described in Section 318 of the Internal Revenue Codeapply for the purpose of determining whether the ownership requirements in divisions(C)(36)(a) to (c) of this section have been met.

(37) "Related member" means a person that, with respect to the taxpayer during all orany portion of the taxable year, is either a related entity, a component member as definedin Section 1563(b) of the Internal Revenue Code, or a person to or from whom there isattribution of stock ownership in accordance with Section 1563(e) of the Internal RevenueCode except, for purposes of determining whether a person is a related member under thisdivision," twenty percent (20%)" shall be substituted for "five percent (5%)" wherever "fivepercent (5%)" appears in Section 1563(e) of the Internal Revenue Code.

(38) "Resident" means an individual who is domiciled in the municipal corporation asdetermined under Section 203.3(E).

(39) "S corporation" means a person that has made an election under subchapter S ofChapter 1 of Subtitle A of the Internal Revenue Code for its taxable year.


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(40) "Schedule C" means internal revenue service schedule C (form 1040) filed by ataxpayer pursuant to the Internal Revenue Code.

(41) "Schedule E" means internal revenue service schedule E (form 1040) filed by ataxpayer pursuant to the Internal Revenue Code.

(42) "Schedule F" means internal revenue service schedule F (form 1040) filed by ataxpayer pursuant to the Internal Revenue Code.

(43) "Single member limited liability company" means a limited liability company thathas one direct member.

(44) "Small employer" means any employer that had total revenue of less than $500,000during the preceding taxable year. For purposes of this division, "total revenue" meansreceipts of any type or kind, including, but not limited to, sales receipts; payments; rents;profits; gains, dividends, and other investment income; compensation; commissions;premiums; money; property; grants; contributions; donations; gifts; program servicerevenue; patient service revenue; premiums; fees, including premium fees and servicefees; tuition payments; unrelated business revenue; reimbursements; any type of paymentfrom a governmental unit, including grants and other allocations; and any other similarreceipts reported for federal income tax purposes or under generally accepted accountingprinciples. "Small employer" does not include the federal government; any stategovernment, including any state agency or instrumentality; any political subdivision; or anyentity treated as a government for financial accounting and reporting purposes.

(45) "Tax Administrator" means the individual charged with direct responsibility foradministration of an income tax levied by the City in accordance with this chapter.

(46) "Tax return, preparer" means any individual described in Section 7701(a)(36) of theInternal Revenue Code and 26 C.F.R. 301.7701-15 .

(47) "Taxable year" means the corresponding tax reporting period as prescribed for thetaxpayer under the Internal Revenue Code.

(48) (a) "Taxpayer" means a person subject to a tax levied on income by a municipalcorporation in accordance with this chapter. "Taxpayer" does not include a grantor trust or,except as provided in division (C)(48)(b)(i) of this section, a disregarded entity.

(b) (i) A single member limited liability company that is a disregarded entity forfederal tax purposes may be a separate taxpayer from its single member in all Ohiomunicipal corporations in which it either filed as a separate taxpayer or did not filefor its taxable year ending in 2003, ifall of the following conditions are met:

(a) The limited liability company's single member is also a limitedliability company.


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(b) The limited liability company and its single member were formedand doing business in one or more Ohio municipal corporations for at leastfive years before January 1, 2004.

(c) Not later than December 31, 2004, the limited liability company andits single member each made an election to be treated as a separatetaxpayer under division (C)(38) of this section as this section existed onDecember 31, 2004.

(d) The limited liability company was not formed for the purpose ofevading or reducing Ohio municipal corporation income tax liability of thelimited liability company or its single member.

(e) The Ohio municipal corporation that was the primary place ofbusiness of the sole member of the limited liability company consented to theelection.

(ii) For purposes of division (C)(48)(b)(ii) of this section, a municipalcorporation was the primary place of business of a limited liability company if, forthe limited liability company's taxable year ending in 2003, its income tax liabilitywas greater in that municipal corporation than in any other municipal corporation inOhio, and that tax liability to that municipal corporation for its taxable year ending in2003 was at least $400,000.

(49) "Taxpayers1 rights and responsibilities" means the rights provided to taxpayers inSections 203.9, 203.12, 203.13, 203.19(B), 203.20, 203.21, and Sections 5717.011 and5717.03 of the Ohio Revised Code, and the responsibilities of taxpayers to file, report,withhold, remit, and pay municipal income tax and otherwise comply with Chapter 718 ofthe Ohio Revised Code and resolutions, ordinances, and rules and regulations adopted bythe City for the imposition and administration of a municipal income tax.

(50) "Video lottery terminal" has the same meaning as in Section 3770.21 of the OhioRevised Code.

(51) "Video lottery terminal sales agent" means a lottery sales agent licensed underChapter 3770 of the Ohio Revised Code to conduct video lottery terminals on behalf of thestate pursuant to Section 3770.21 of the Ohio Revised Code.

SECTION 203.3 IMPOSITION OF TAX.

The income tax levied by the City at a rate of two and one-half percent (2.5%) is levied onthe Municipal Taxable Income of every person residing in and/or earning and/or receivingincome in the City,

Individuals.

(A) For residents of the City, the income tax levied herein shall be on all income, salaries,qualifying wages, commissions, and other compensation from whatever source earned or


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received by the resident, including the resident's distributive share of the net profit of pass-through entities owned directly or indirectly by the resident and any net profit of theresident. This is further detailed in the definition of income (Section 203.2 (C)(16)).

(B)(1) For nonresidents, all income, salaries, qualifying wages, commissions, and othercompensation from whatever source earned or received by the nonresident for work done,services performed or rendered, or activities conducted in the municipal corporation,including any net profit of the nonresident, but excluding the nonresident's distributiveshare of the net profit or loss of only pass-through entities owned directly or indirectly bythe nonresident.

(2) Only if the City is the municipal corporation of residence shall the income tax belevied on the income of any member or employee of the Ohio General Assembly, includingthe Lieutenant Governor, whose income is received as a result of services rendered assuch member or employee and is paid from appropriated funds of this state.

(3) Only if the City is the municipal corporation of residence shall the income tax belevied on the income of the Chief Justice or a Justice of the Supreme Court received as aresult of services rendered as the Chief Justice or Justice. Only if the City is the municipalcorporation of residence shall the income tax be levied on the income of a judge sitting byassignment of the Chief Justice or on the income of a district court of appeals judge sittingin multiple locations within the district, received as a result of services rendered as a judge.

(C) For residents and nonresidents, income can be reduced to "Municipal TaxableIncome" as defined in Section 203.2 (C)(21). Exemptions which may apply are specified inSection 203.2 (C)(12).

Refundable credit for Nonqualified Deferred Compensation Plan.

(D)(1) As used in this division:

(a) "Nonqualified deferred compensation plan" means a compensation plandescribed in Section 3121(v)(2)(C) of the Internal Revenue Code.

(b) "Qualifying loss" means the amount of compensation attributable to a taxpayer'snonqualified deferred compensation plan, less the receipt of money and propertyattributable to distributions from the nonqualified deferred compensation plan. Full loss issustained if no distribution of money and property is made by the nonqualified deferredcompensation plan. The taxpayer sustains a qualifying loss only in the taxable year inwhich the taxpayer receives the final distribution of money and property pursuant to thatnonqualified deferred compensation plan.

(c) (i) "Qualifying tax rate" means the applicable tax rate for the taxable year forwhich the taxpayer paid income tax to the City with respect to any portion of the totalamount of compensation the payment of which is deferred pursuant to a nonqualifieddeferred compensation plan.


(ii) If different tax rates applied for different taxable years, then the "qualifyingtax rate" is a weighted average of those different tax rates. The weighted averageshall be based upon the tax paid to the City each year with respect to thenonqualified deferred compensation plan.

(d) "Refundable credit" means the amount of the City income tax that was paid onthe non-distributed portion, if any, of a nonqualified deferred compensation plan.

(2) If, in addition to the City, a taxpayer has paid tax to other municipal corporations withrespect to the nonqualified deferred compensation plan, the amount of the credit that ataxpayer may claim from each municipal corporation shall be calculated on the basis ofeach municipal corporation's proportionate share of the total municipal corporation incometax paid by the taxpayer to all municipal corporations with respect to the nonqualifieddeferred compensation plan.

(3) In no case shall the amount of the credit allowed under this section exceed thecumulative income tax that a taxpayer has paid to the City for all taxable years with respectto the nonqualified deferred compensation plan.

(4) The credit allowed under this division is allowed only to the extent the taxpayer'squalifying loss is attributable to:

(a) The insolvency or bankruptcy of the employer who had established thenonqualified deferred compensation plan; or

(b) The employee's failure or inability to satisfy all of the employer's terms andconditions necessary to receive the nonqualified deferred compensation.

Domicile.

(E)(1) (a) An individual is presumed to be domiciled in the City for all or part of a taxableyear if the individual was domiciled in the City on the last day of the immediately precedingtaxable year or if the Tax Administrator reasonably concludes that the individual isdomiciled in the City for all or part of the taxable year.

(b) An individual may rebut the presumption of domicile described in division(E)(1)(a) of this section if the individual establishes by a preponderance of the evidencethat the individual was not domiciled in the City for all or part of the taxable year.

(2) For the purpose of determining whether an individual is domiciled in the City for all orpart of a taxable year, factors that may be considered include, but are not limited to, thefollowing:

(a) The individual's domicile in other taxable years;

(b) The location at which the individual is registered to vote;

(c) The address on the individual's driver's license;


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(d) The location of real estate for which the individual claimed a property taxexemption or reduction allowed on the basis of the individual's residence or domicile;

(e) The location and value of abodes owned or leased by the individual;

(f) Declarations, written or oral, made by the individual regarding the individual'sresidency;

(g) The primary location at which the individual is employed.

(h) The location of educational institutions attended by the individual's dependentsas defined in Section 152 of the Internal Revenue Code, to the extent that tuition paid tosuch educational institution is based on the residency of the individual or the individual'sspouse in the municipal corporation where the educational institution is located;

(i) The number of contact periods the individual has with the City. For the purposesof this division, an individual has one "contact period" with the City if the individual is awayovernight from the individual's abode located outside of the City and while away overnightfrom that abode spends at least some portion, however minimal, of each of twoconsecutive days in the City.

(3) All additional applicable factors are provided in the Rules and Regulations.

Businesses.

(F) This division applies to any taxpayer engaged in a business or profession in the City,unless the taxpayer is an individual who resides in the City or the taxpayer is an electriccompany, combined company, or telephone company that is subject to and required to filereports under Chapter 5745 of the Ohio Revised Code.

(1) Except as otherwise provided in division (F)(2) of this section, net profit from a businessor profession conducted both within and without the boundaries of the City shall beconsidered as having a taxable situs in the City for purposes of municipal income taxationin the same proportion as the average ratio of the following:

(a) The average original cost of the real property and tangible personal propertyowned or used by the taxpayer in the business or profession in the City during the taxableperiod to the average original cost of all of the real and tangible personal property ownedor used by the taxpayer in the business or profession during the same period, whereversituated.

As used in the preceding paragraph, tangible personal or real property shall includeproperty rented or leased by the taxpayer and the value of such property shall bedetermined by multiplying the annual rental thereon by eight;

(b) Wages, salaries, and other compensation paid during the taxable period toindividuals employed in the business or profession for services performed in the City towages, salaries, and other compensation paid during the same period to individuals


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employed in the business or profession, wherever the individual's services are performed,excluding compensation from which taxes are not required to be withheld under Section203.4 (C);

(c) Total gross receipts of the business or profession from sales and rentals madeand services performed during the taxable period in the City to total gross receipts of thebusiness or profession during the same period from sales, rentals, and services, wherevermade or performed.

(2) (a) If the apportionment factors described in division (F)(1) of this section do notfairly represent the extent of a taxpayer's business activity in the City, the taxpayer mayrequest, or the Tax Administrator of the City may require, that the taxpayer use, withrespect to all or any portion of the income of the taxpayer, an alternative apportionmentmethod involving one or more of the following:

(i) Separate accounting;

(ii) The exclusion of one or more of the factors;

(iii) The inclusion of one or more additional factors that would provide for amore fair apportionment of the income of the taxpayer to the municipal corporation;

(iv) A modification of one or more of the factors.

(b) A taxpayer request to use an alternative apportionment method shall be inwriting and shall accompany a tax return, timely filed appeal of an assessment, or timelyfiled amended tax return. The taxpayer may use the requested alternative method unlessthe Tax Administrator denies the request in an assessment issued within the periodprescribed by Section 203.12 (A).

(c) The Tax Administrator may require a taxpayer to use an alternativeapportionment method as described in division (F)(2)(a) of this section, but only by issuingan assessment to the taxpayer within the period prescribed by Section 203.12 (A).

(d) Nothing in division (F)(2) of this section nullifies or otherwise affects anyalternative apportionment arrangement approved by a the Tax Administrator or otherwiseagreed upon by both the Tax Administrator and taxpayer before January 1, 2016.

(3) As used in division (F)(1)(b) of this section, "wages, salaries, and other compensation"includes only wages, salaries, or other compensation paid to an employee for servicesperformed at any of the following locations:


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(a) A location that is owned, controlled, or used by, rented to, or under thepossession of one of the following:

(i) The employer;

(ii) A vendor, customer, client, or patient of the employer, or a relatedmember of such a vendor, customer, client, or patient;

(iii) A vendor, customer, client, or patientof a person described in (F)(3)(a)(ii)of this section, or a related member of such a vendor, customer, client, or patient.

(b) Any location at which a trial, appeal, hearing, investigation, inquiry, review,court-martial, or similar administrative, judicial, or legislative matter or proceeding is beingconducted, provided that the compensation is paid for services performed for, or on behalfof, the employer or that the employee's presence at the location directly or indirectlybenefits the employer;

(c) Any other location, if the Tax Administrator determines that the employerdirected the employee to perform the services at the other location in lieu of a locationdescribed in division (F) (3)(a) or (b) of this section solely in order to avoid or reduce theemployer's municipal income tax liability. If the Tax Administrator makes such adetermination, the employer may dispute the determination by establishing, by apreponderance of the evidence, that the Tax Administrator's determination wasunreasonable.

(4) For the purposes of division (F)(1)(c) of this section, receipts from sales and rentalsmade and services performed shall be sitused to a municipal corporation as follows:

(a) Gross receipts from the sale of tangible personal property shall be sitused to themunicipal corporation in which the sale originated. For the purposes of this division, a saleof property originates in the City if, regardless of where title passes, the property meetsany of the following criteria:

(i) The property is shipped to or delivered within the City from a stock ofgoods located within the City.

(ii) The property is delivered within the City from a location outside the City,provided the taxpayer is regularly engaged through its own employees in thesolicitation or promotion of sales within the City and the sales result from suchsolicitation or promotion.

(iii) The property is shipped from a place within the City to purchasers outsidethe municipal corporation, provided that the taxpayer is not, through its ownemployees, regularly engaged in the solicitation or promotion of sales at the placewhere delivery is made.

(b) Gross receipts from the sale of services shall be sitused to the City to the extentthat such services are performed in the City.


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(c) To the extent included in income, gross receipts from the sale of real propertylocated in the City shall be sitused to the City.

(d) To the extent included in income, gross receipts from rents and royalties fromreal property located in the City shall be sitused to the City.

(e) Gross receipts from rents and royalties from tangible personal property shall besitused to the City based upon the extent to which the tangible personal property is used inthe City.

(5) The net profit received by an individual taxpayer from the rental of real estate owneddirectly by the individual^ or by a disregarded entity owned by the individual^ shall besubject to the City's tax only if the property generating the net profit is located in the City orif the individual taxpayer that receives the net profit is a resident of the City. The City shallallow such taxpayers to elect to use separate accounting for the purpose of calculating netprofit sitused under this division to the municipal corporation in which the property islocated.

(6) (a) Commissions received by a real estate agent or broker relating to the sale,purchase, or lease of real estate shall be sitused to the municipal corporation in which thereal estate is located. Net profit reported by the real estate agent or broker shall beallocated to the City, if applicable, based upon the ratio of the commissions the agent orbroker received from the sale, purchase, or lease of real estate located in the City to thecommissions received from the sale, purchase, or lease of real estate everywhere in thetaxable year.

(b) An individual who is a resident of the City shall report the individual's net profitfrom all real estate activity on the individual's annual tax return for the City. The individualmay claim a credit for taxes the individual paid on such net profit to another municipalcorporation to the extent that such a credit is allowed under the City's income tax code.

(7) When calculating the ratios described in division (F)(1) of this section for thepurposes of that division or division (F)(2) of this section, the owner of a disregarded entityshall include in the owner's ratios the property, payroll, and gross receipts of suchdisregarded entity.

(8) The City, by ordinance, may grant a refundable or nonrefundable credit against its taxon income to a taxpayer for the purpose of fostering job creation or job retention in the Citypursuant to Sections 718.15 and 718.151 of the Ohio Revised Code.

SECTION 203.4 COLLECTION AT SOURCE.

Withholding provisions.

(A) Each employer, agent of an employer, or other payer located or doing business in theCity shall withhold an income tax from the qualifying wages earned and/or received byeach employee in the City. Except for qualifying wages for which withholding is notrequired under Section 203.3 or division (B)(4) or (6) of this section, the tax shall be


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withheld at the rate, specified in Section 203.3 of this chapter, of 2.5%. An employer, agentof an employer, or other payer shall deduct and withhold the tax from qualifying wages onthe date that the employer, agent, or other payer directly, indirectly, or constructively paysthe qualifying wages to, orcredits the qualifying wages to the benefit of, the employee.

(B)(1) Except as provided in division (B)(2) of this section, an employer, agent of anemployer, or other payer shall remit to the Tax Administrator of the City the greater of theincome taxes deducted and withheld or the income taxes required to be deducted andwithheld bythe employer, agent, or other payer according to the following schedule:

(a) Taxes required to be deducted and withheld shall be remitted monthly to the TaxAdministrator if the total taxes deducted and withheld or required to be deducted andwithheld by the employer, agent, or other payer on behalf of the City in the precedingcalendar year exceeded $2,399, or if the total amount of taxes deducted and withheld orrequired to be deducted and withheld on behalf of the City in any month of the precedingcalendar quarter exceeded $200. Payment shall be made so that the payment is receivedby the Tax Administrator not later than 15 days after the last day of each month for whichthe tax was withheld.

(b) Any employer, agent of an employer, or other payer not required to makepayments under division (B)(1)(a) or (B)(1)(c) of this section of taxes required to bededucted and withheld shall make quarterly payments to the Tax Administrator not laterthan the 15th day of the month following the end of each calendarquarter.

(c) Notwithstanding the provisions of Section (B)(1)(a)and (b) of this section, taxesrequired to be deducted and withheld shall be remitted semimonthly to the TaxAdministrator if the total taxes deducted and withheld or required to be deducted andwithheld on behalf of the City in the preceding calendar year exceeded $11,999, or if inany month of the preceding calendar year exceeded $1,000. Payment shall be made sothat the payment is received by the Tax Administrator not later than one ofthe following: i)ifthe taxes were deducted and withheld or required to be deducted and withheld during thefirst fifteen days of a month, the third banking day after the fifteenth day of that month; (ii) ifthe taxes were deducted and withheld or required to be deducted and withheld after thefifteenth day of a month and before the first day of the immediately following month, thethird banking day after the last day of the month.

(2) If the employer, agent of an employer, or other payer is required to make paymentselectronically for the purpose of paying federal taxes withheld on payments to employeesunder Section 6302 of the Internal Revenue Code, 26 C.F.R. 31.6302-1, or any otherfederal statute or regulation, the payment shall be made by electronic funds transfer to theTax Administrator of all taxes deducted and withheld on behalf of the City. The payment oftax by electronic funds transfer under this division does not affect an employer's, agent's,or other payer's obligation to file any return as required under this section.

(3) An employer, agent of an employer, orother payer shall make and file a return showingthe amount of tax withheld by the employer, agent, or other payer from the qualifyingwages of each employee and remitted to the Tax Administrator. A return filed by anemployer, agent, or other payer under this division shall be accepted by Tax Administrator


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and the City as the return required of an non-resident employee whose sole incomesubject to the tax under this chapter is the qualifying wages reported by the employee'semployer, agent of an employer, or other payer.

(4) An employer, agent of an employer, or other payer is not required to withhold the Cityincome tax with respect to an individual's disqualifying disposition of an incentive stockoption if, at the time of the disqualifying disposition, the individual is not an employee ofeither the corporation with respect to whose stock the option has been issued or of suchcorporation's successor entity.

(5) (a) An employee is not relieved from liability for a tax by the failure of the employer,agent of an employer, or other payer to withhold the tax as required under this chapter orby the employer's, agent's, or other payer's exemption from the requirement to withholdthe tax.

(b) The failure of an employer, agent of an employer, or other payer to remit to theCity the tax withheld relieves the employee from liability for that tax unless the employeecolluded with the employer, agent, or other payer in connection with the failure to remit thetax withheld.

(6) Compensation deferred before June 26, 2003, is not subject to a the City income taxor income tax withholding requirement to the extent the deferred compensation does notconstitute qualifying wages at the time the deferred compensation is paid or distributed.

(7) Each employer, agent of an employer, or other payer required to withhold taxes is liablefor the payment of that amount required to be withheld, whether or not such taxes havebeen withheld, and such amount shall be deemed to be held in trust for the City until suchtime as the withheld amount is remitted to the Tax Administrator.

(8) On or before the last day of February of each year, an employer shall file a withholdingreconciliation return with the Tax Administrator listing:

(a) The names, addresses, and social security numbers of all employees fromwhose qualifying wages tax was withheld or should have been withheld for the City duringthe preceding calendar year;

(b) The amount of tax withheld, if any, from each such employee, the total amountof qualifying wages paid to such employee during the preceding calendar yearT;

(c) The name of every other municipal corporation for which tax was withheld orshould have been withheld from such employee during the preceding calendar yea;

(d) Any other information required for federal income tax reporting purposes onInternal Revenue Service form W-2 or its equivalent form with respect to such employee;

(e) Other information as may be required by the Tax Administrator.


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(9) The officer or the employee of the employer, agent of an employer, or other payer withcontrol or direct supervision of or charged with the responsibility for withholding the tax orfiling the reports and making payments as required by this section, shall be personallyliable for a failure to file a report or pay the tax due as required by this section. Thedissolution of an employer, agent of an employer, or other payer does not discharge theofficer's or employee's liability for a failure of the employer, agent of an employer, or otherpayer to file returns or pay any tax due.

(10) An employer is required to deduct and withhold the City income tax on tips andgratuities received by the employer's employees and constituting qualifying wages, butonly to the extent that the tips and gratuities are under the employer's control. For thepurposes of this division, a tip or gratuity is under the employer's control if the tip orgratuity is paid by the customer to the employer for subsequent remittance to theemployee, or if the customer pays the tip or gratuity by credit card, debit card, or otherelectronic means.

(11) The Tax Administrator shall consider any tax withheld by an employer at the requestof an employee, when such tax is not otherwise required to be withheld by this chapter, tobe tax required to be withheld and remitted for the purposes of this section.

Occasional Entrant - Withholding.

(C)(1) As used in this division:

(a) "Employer" includes a person that is a related member to or of an employer.

(b) "Fixed location" means a permanent place of doing business in this state, suchas an office, warehouse, storefront, or similar location owned or controlled by an employer.

(c) "Principal place of work" means the fixed location to which an employee isrequired to report for employment duties on a regular and ordinary basis. If the employeeis not required to report for employment duties on a regular and ordinary basis to a fixedlocation, "principal place of work" means the worksite location in this state to which theemployee is required to report for employment duties on a regular and ordinary basis. Ifthe employee is not required to report for employment duties on a regular and ordinarybasis to a fixed location or worksite location, "principal place of work" means the location inthis state at which the employee spends the greatest number of days in a calendar yearperforming services for or on behalf of the employee's employer. If there is not a singlemunicipal corporation in which the employee spent the "greatest number of days in acalendar year" performing services for or on behalf of the employer, but instead there aretwo or more municipal corporations in which the employee spent an identical number ofdays that is greater than the number of days the employee spent in any other municipalcorporation, the employer shall allocate any of the employee's qualifying wages subject todivision (C)(2)(a)(i) of this section among those two or more municipal corporations. Theallocation shall be made using any fair and reasonable method, including, but not limitedto, an equal allocation among such municipal corporations or an allocation based upon thetime spent or sales made by the employee in each such municipal corporation. A municipalcorporation to which qualifying wages are allocated under this division shall be the


employee's "principal place of work" with respect to those qualifying wages for thepurposes of this section. For the purposes of this division, the location at which anemployee spends a particular day shall be determined in accordance with division(C)(2)(b) of this section, except that "location" shall be substituted for "municipalcorporation" wherever "municipal corporation" appears in that division.

(d) "Professional athlete" means an athlete who performs services in a professionalathletic event for wages or other remuneration.

(e) "Professional entertainer" means a person who performs services in theprofessional performing arts for wages or other remuneration on a per-event basis.

(f) "Public figure" means a person of prominence who performs services at discreteevents, such as speeches, public appearances, or similar events, for wages or otherremuneration on a per-event basis.

(g) "Worksite location" means a construction site or other temporary worksite in thisstate at which the employer provides services for more than 20 days during the calendaryear. "Worksite location" does not include the home of an employee.

(2) (a) Subject to divisions (C)(3), (5), (6), and (7) of this section, an employer is notrequired to withhold the City income tax on qualifying wages paid to an employee for theperformance of personal services in the City if the employee performed such services inthe City on 20 or fewer days in a calendar year, unless one of the following conditionsapplies:

(i) The employee's principal place of work is located in the City.

(ii) The employee performed services at one or more presumed worksitelocations in the City. For the purposes of this division, "presumed worksite location"means a construction site or other temporary worksite in the City at which theemployer provides or provided services that can reasonably be, or would havebeen, expected by the employer to last more than 20 days in a calendar year.Services can "reasonably be expected by the employer to last more than 20 days" ifeither of the following applies at the time the services commence:

(a) The nature of the services are such that it will require more than 20days of the services to complete the services;

(b) The agreement between the employer and its customer to performservices at a location requires the employer to perform the services at thelocation for more than 20 days.

The employee is a resident of the City and has requested that theemployer withhold tax from the employee's qualifying wages as provided in Section203.4.


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(iv) The employee is a professional athlete, professional entertainer, or publicfigure, and the qualifying wages are paid for the performance of services in theemployee's capacity as a professional athlete, professional entertainer, or publicfigure.

(b) For the purposes of division (C)(2)(a) of this section, an employee shall beconsidered to have spent a day performing services in the City only if the employee spentmore time performing services for or on behalf of the employer in the Citythan in any othermunicipal corporation on that day. For the purposes of determining the amount of time anemployee spent in a particular location, the time spent performing one or more of thefollowing activities shall be considered to have been spent at the employee's principalplace of work:

(i) Traveling to the location at which the employee will first perform servicesfor the employer for the day;

(ii) Traveling from a location at which the employee was performing servicesfor the employer to any other location;

Traveling from any location to another location in order to pick up or load,for the purpose of transportation or delivery, property that has been purchased,sold, assembled, fabricated, repaired, refurbished, processed, remanufactured, orimproved by the employee's employer;

(iv) Transporting or delivering property described in division (C)(2)(b)(iii) ofthis section, provided that, upon delivery of the property, the employee does nottemporarily or permanently affix the property to real estate owned, used, orcontrolled by a person other than the employee's employer;

(v) Traveling from the location at which the employee makes the employee'sfinal delivery or pick-up for the day to either the employee's principal place of workor a location at which the employee will not perform services for the employer.

(3) If the principal place of work of an employee is located in another Ohio municipalcorporation that imposes an income tax, the exception from withholding requirementsdescribed in division (C)(2)(a) of this section shall apply only if, with respect to theemployee's qualifying wages described in that division, the employer withholds and remitstax on such qualifying wages to that municipal corporation.

(4) (a) Except as provided in division (C)(4)(b) of this section, if, during a calendar year,the number of days an employee spends performing personal services in the City exceedsthe 20-day threshold, the employer shall withhold and remit tax to the City for anysubsequent days in that calendar year on which the employer pays qualifying wages to theemployee for personal services performed in the City.

(b) An employer required to begin withholding tax for the City under division(C)(4)(a) of this section may elect to withhold tax for the City for the first 20 days on which


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the employer paid qualifying wages to the employee for personal services performed in theCity.

(5) If an employer's fixed location is the City and the employer qualifies as a smallemployer as defined in Section 203.2, the employer shall withhold municipal income tax onall of the employee's qualifying wages for a taxable year and remit that tax only to the City,regardless of the number of days which the employee worked outside the corporateboundaries of the City. To determine whether an employer qualifies as a small employerfor a taxable year, a the employer will be required to provide the Tax Administrator with theemployer's federal income tax return for the preceding taxable year.

(6) Divisions (C)(2)(a) and (4) of this section shall not apply to the extent that a TaxAdministrator and an employer enter into an agreement regarding the manner in which theemployer shall comply with the requirements of Section 203.4.

SECTION 203.5 ANNUAL RETURN; FILING.

(A) An annual City income tax return shall be completed and filed by every individualtaxpayer eighteen (18) years of age or older and any taxpayer that is not an individual foreach taxable year for which the taxpayer is subject to the tax, whether or not a tax is duethereon.

(1) The Tax Administrator may accept on behalf of all nonresident individual taxpayers areturn filed by an employer, agent of an employer, or other payer under this section whenthe nonresident individual taxpayer's sole income subject to the tax is the qualifying wagesreported by the employer, agent of an employer, or other payer, and no additional tax isdue the City.

(2) Retirees having no Municipal Taxable Income for City income tax purposes may filewith the Tax Administrator a written exemption from these filing requirements on a formprescribed by the Tax Administrator. The written exemption shall indicate the date ofretirement and the entity from which retired. The exemption shall be in effect until suchtime as the retiree receives Municipal Taxable Income taxable to the City, at which timethe retiree shall be required to comply with all applicable provisions of this chapter.

(B) If an individual is deceased, any return or notice required of that individual shall becompleted and filed by that decedent's executor, administrator, or other person chargedwith the property of that decedent.

(C) Ifan individual is unable to complete and file a return or notice required by the City, thereturn or notice required of that individual shall be completed and filed by the individual'sduly authorized agent, guardian, conservator, fiduciary, or other person charged with thecare of the person or property of that individual.

(D) Returns or notices required of an estate or a trust shall be completed and filed by thefiduciary of the estate or trust.

(E) The City shall permit spouses to file a joint return.


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(F)(1) Each return required to be filed under this division shall contain the signature of thetaxpayer or the taxpayer's duly authorized agent and of the person who prepared thereturn for the taxpayer. The return shall include the taxpayer's social security number ortaxpayer identification number. Each return shall be verified by a declaration under penaltyof perjury.

(2) The Tax Administrator shall require a taxpayer who is an individual to include, witheach annual return and amended return, copies of the following documents: all of thetaxpayer's Internal Revenue Service form W-2, "Wage and Tax Statements," including allinformation reported on the taxpayer's federal W-2, as well as taxable wages reported orwithheld for any municipal corporation; the taxpayer's Internal Revenue Service form 1040;and, with respect to an amended tax return, any other documentation necessary to supportthe adjustments made in the amended return. An individual taxpayer who files the annualreturn required by this section electronically is not required to provide paper copies of anyof the foregoing to the Tax Administrator unless the Tax Administrator requests suchcopies after the return has been filed.

(3) The Tax Administrator may require a taxpayer that is not an individual to include, witheach annual net profit return, amended net profit return, or request for refund requiredunder this section, copies of only the following documents: the taxpayer's Internal RevenueService form 1041, form 1065, form 1120, form 1120-REIT, form 1120F, or form 1120S,and, with respect to an amended tax return or refund request, any other documentationnecessary to support the refund request or the adjustments made in the amended return.A taxpayer that is not an individual and that files an annual net profit return electronicallythrough the Ohio Business Gateway or in some other manner shall either mail thedocuments required under this division to the Tax Administrator at the time of filing or, ifelectronic submission is available, submit the documents electronically through the OhioBusiness Gateway.

(4) After a taxpayer files a tax return, the Tax Administrator may request, and the taxpayershall provide, any information, statements, or documents required by the City to determineand verify the taxpayer's municipal income tax liability. The requirements imposed underdivision (F) of this section apply regardless of whether the taxpayer files on a generic formor on a form prescribed by the Tax Administrator.

(G)(1) Except as otherwise provided in this chapter, each return required to be filed underthis section shall be completed and filed as required by the Tax Administrator on or beforethe date prescribed for the filing of state individual income tax returns under division (G) ofSection 5747.08 of the Ohio Revised Code. The taxpayer shall complete and file the returnor notice on forms prescribed by the Tax Administrator or on generic forms, together withremittance made payable to the City . No remittance is required if the net amount due isten dollars or less.

(2) Any taxpayer that has duly requested an automatic six-month extension for filing thetaxpayer's federal income tax return shall automatically receive an extension for the filingof the City's income tax return. The extended due date of the City's income tax return shallbe the 15th day of the tenth month after the last day of the taxable year to which the return


relates. An extension of time to file under this division is not an extension of the time to payany tax due unless the Tax Administrator grants an extension of that date.

(a) A copy of the federal extension request shall be included with the filing of theCity's income tax return.

(b) A taxpayer that has not requested or received a six-month extension for filingthe taxpayer's federal income tax return may request that the Tax Administrator grant thetaxpayer a six-month extension of the date for filing the taxpayer's City income tax return.If the request is received by the Tax Administrator on or before the date the City incometax return is due, the Tax Administrator shall grant the taxpayer's requested extension.

(3) If the tax commissioner extends for all taxpayers the date for filing state income taxreturns under division (G) of Section 5747.08 of the Ohio Revised Code, a taxpayer shallautomatically receive an extension for the filing of a the City's income tax return. Theextended due date of the City's income tax return shall be the same as the extended duedate of the state income tax return.

(4) If the Tax Administrator considers it necessary in order to ensure the payment of thetax imposed by the City, the Tax Administrator may require taxpayers to file returns andmake payments otherwise than as provided in this division, including taxpayers nototherwise required to file annual returns.

(5) To the extent that any provision in this division (G) of this section conflicts with anyprovision in divisions (N), (O), (P), or (Q) of this section, the provisions in divisions (N), (O),(P), or (Q) prevail.

(H)(1) For taxable years beginning after 2015, the City shall not require a taxpayer to remittax with respect to net profits if the net amount due is ten dollars or less.

(2) Any taxpayer not required to remit tax to the City for a taxable year pursuant to division(H)(1) of this section shall file with the City an annual net profit return under division (F)(3)of this section.

(I) If a payment is required to be made by electronic funds transfer, the payment isconsidered to be made when the payment is credited to an account designated by the TaxAdministrator for the receipt of tax payments, except that, when a payment made byelectronic funds transfer is delayed due to circumstances not under the control of thetaxpayer, the payment is considered to be made when the taxpayer submitted thepayment. This division shall not apply to payments required to be made under division(B)(1)(a) of Section 203.4 or provisions for semi-monthly withholding.

(J) Taxes withheld for the City by an employer, the agent of an employer, or other payer asdescribed in Section 203.4 shall be allowed to the taxpayer as credits against payment ofthe tax imposed on the taxpayer by the City, unless the amounts withheld were notremitted to the City and the recipient colluded with the employer, agent, or other payer inconnection with the failure to remit the amounts withheld.


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(K) Each return required by the City to be filed in accordance with this division shall includea box that the taxpayer may check to authorize another person, including a tax returnpreparer who prepared the return, to communicate with the Tax Administrator aboutmatters pertaining to the return.

(L) The Tax Administrator shall accept for filing a generic form of any income tax return,report, or document required by the City, provided that the generic form, once completedand filed, contains all of the information required by ordinance, resolution, or rules andregulations adopted by the City or the Tax Administrator, and provided that the taxpayer ortax return preparer filing the generic form otherwise complies with the provisions of thischapter and of the City's ordinance, resolution, or rules and regulations governing the filingof returns, reports, or documents.

Filing via Ohio Business Gateway.

(M)(1) Anytaxpayer subject to municipal incometaxation with respect to the taxpayer's netprofit from a business or profession may file the City's income tax return, estimatedmunicipal income tax return, or extension for filing a municipal income tax return, and maymake payment of amounts shown to be due on such returns, by using the Ohio BusinessGateway.

(2) Any employer, agent of an employer, or other payer may report the amount ofmunicipal income tax withheld from qualifying wages, and may make remittance of suchamounts, by using the Ohio Business Gateway.

(3) Nothing in this section affects the due dates forfiling employerwithholding tax returns.

Extension for service in or for the armed forces.

(N) Each member of the national guard of any state and each member of a reservecomponent of the armed forces of the United States called to active duty pursuant to anexecutive order issued by the president of the United States or an act of the congress ofthe United States, and each civilian serving as support personnel in a combat zone orcontingency operation in support of the armed forces, may apply to the Tax Administratorof the City for both an extension of time for filing of the return and an extension of time forpayment of taxes required by the City during the period of the member's or civilian's dutyservice, and for 180 days thereafter. The application shall be filed on or before the onehundred eightieth day after the member's or civilian's duty terminates. An applicant shallprovide such evidence as the Tax Administrator considers necessary to demonstrateeligibility for the extension.

(0)(1) If the Tax Administrator ascertains that an applicant is qualified for an extensionunder this section, the Tax Administrator shall enter into a contract with the applicant forthe payment of the tax in installments that begin on the 181st day after the applicant'sactive duty or service terminates. The Tax Administrator may prescribe such contractterms as the Tax Administrator considers appropriate. However, taxes pursuant to acontract entered into under this division are not delinquent, and the Tax Administrator shall


not require any payments of penalties or interest in connection with those taxes for theextension period.

(2) If the Tax Administrator determines that an applicant is qualified for an extension underthis section, the applicant shall neither be required to file any return, report, or other taxdocument nor be required to pay any tax otherwise due to the municipal corporation beforethe 181st day after the applicant's active duty or service terminates.

(3) Taxes paid pursuant to a contract entered into under (0)(1) of this division are notdelinquent. The Tax Administrator shall not require any payments of penalties or interest inconnection with those taxes for the extension period.

(P)(1) Nothing in this division denies to any person described in this division the applicationof divisions (N) and (O) of this section.

(2) (a) A qualifying taxpayer who is eligible for an extension under the Internal RevenueCode shall receive both an extension of time in which to file any return, report, or other taxdocument and an extension of time in which to make any payment of taxes required by amunicipal corporation in accordance with this chapter. The length of any extension grantedunder division (P)(2)(a) of this section shall be equal to the length of the correspondingextension that the taxpayer receives under the Internal Revenue Code. As used in thisdivision, "qualifying taxpayer" means a member of the national guard or a member of areserve component of the armed forces of the United States called to active duty pursuantto either an executive order issued by the president of the United States or an act of thecongress of the United States, or a civilian serving as support personnel in a combat zoneor contingency operation in support of the armed forces.

(b) Taxes whose payment is extended in accordance with division (P)(2)(a) of thissection are not delinquent during the extension period. Such taxes become delinquent onthe first day after the expiration of the extension period ifthe taxes are not paid prior to thatdate. The Tax Administrator shall not require any payment of penalties or interest inconnection with those taxes for the extension period. The Tax Administrator shall notinclude any period of extension granted under division (C)(2)(a) of this section incalculating the penalty or interest due on any unpaid tax.

(Q) For each taxable year to which division (N), (O), or (P) of this section applies to ataxpayer, the provisions of divisions (0)(2) and (3) of this section, as applicable, apply tothe spouse of that taxpayer if the filing status of the spouse and the taxpayer is marriedfiling jointly for that year.

Consolidated municipal income tax return.

(R) As used in this section:

(1) "Affiliated group of corporations" means an affiliated group as defined in Section 1504of the Internal Revenue Code, except that, ifsuch a group includes at least one incumbentlocal exchange carrier that is primarily engaged in the business of providing local


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exchange telephone service in this state, the affiliated group shall not include anyincumbent local exchange carrier that would otherwise be included in the group.

(2) "Consolidated federal income tax return" means a consolidated return filed for federalincome tax purposes pursuant to Section 1501 of the Internal Revenue Code.

(3) "Consolidated federal taxable income" means the consolidated taxable income of anaffiliated group of corporations, as computed for the purposes of filing a consolidatedfederal income tax return, before consideration of net operating losses or specialdeductions. "Consolidated federal taxable income" does not include income or loss of anincumbent local exchange carrier that is excluded from the affiliated group under division(R)(1) of this section.

(4) "Incumbent local exchange carrier" has the same meaning as in Section 4927.01 of theOhio Revised Code.

(5) "Local exchange telephone service" has the same meaning as in Section 5727.01 ofthe Ohio Revised Code.

(S)(1) For taxable years beginning on or after January 1, 2016, a taxpayer that is amember of an affiliated group of corporations may elect to file a consolidated municipalincome tax return for a taxable year if at least one member of the affiliated group ofcorporations is subject to the City's income tax in that taxable year, and if the affiliatedgroup of corporations filed a consolidated federal income tax return with respect to thattaxable year. The election is binding for a five-year period beginning with the first taxableyear of the initial election unless a change in the reporting method is required underfederal law. The election continues to be binding for each subsequent five-year periodunless the taxpayer elects to discontinue filing consolidated municipal income tax returnsunder division (S)(2) of this section or a taxpayer receives permission from the TaxAdministrator. The Tax Administrator shall approve such a request for good cause shown.

(2) An election to discontinue filing consolidated municipal income tax returns under thissection must be made in the first year following the last year of a five-year consolidatedmunicipal income tax return election period in effect under division (S)(1) of this section.The election to discontinue filing a consolidated municipal income tax return is binding fora five-year period beginning with the first taxable year of the election.

(3) An election made under division (S)(1) or (2) of this section is binding on all membersof the affiliated group of corporations subject to a municipal income tax.

(T) A taxpayer that is a member of an affiliated group of corporations that filed aconsolidated federal income tax return for a taxable year shall file a consolidated Cityincome tax return for that taxable year if the Tax Administrator determines, by apreponderance of the evidence, that intercompany transactions have not been conductedat arm's length and that there has been a distortive shifting of income or expenses withregard to allocation of net profits to the City. A taxpayer that is required to file aconsolidated City income tax return for a taxable year shall file a consolidated City incometax return for all subsequent taxable years, unless the taxpayer requests and receives


written permission from the Tax Administrator to file a separate return or a taxpayer hasexperienced a change in circumstances.

(U) A taxpayer shall prepare a consolidated City income tax return in the same manner asis required under the United States department of treasury regulations that prescribeprocedures for the preparation of the consolidated federal income tax return required to befiled by the common parent of the affiliated group of which the taxpayer is a member.

(V)(1) Except as otherwise provided in divisions (V)(2), (3), and (4) of this section,corporations that file a consolidated municipal income tax return shall compute adjustedfederal taxable income, as defined in Section 203.2, by substituting "consolidated federaltaxable income" for "federal taxable income" wherever "federal taxable income" appears inthat division and by substituting "an affiliated group of corporation's" for "a C corporation's"wherever "a C corporation's" appears in that division.

(2) No corporation filing a consolidated City income tax return shall make any adjustmentotherwise required under Section 203.2(C)(1) to the extent that the item of income ordeduction otherwise subject to the adjustment has been eliminated or consolidated in thecomputation of consolidated federal taxable income.

(3) If the net profit or loss of a pass-through entity having at least eighty percent (80%) ofthe value of its ownership interest owned or controlled, directly or indirectly, by an affiliatedgroup of corporations is included in that affiliated group's consolidated federal taxableincome for a taxable year, the corporation filing a consolidated City income tax return shalldo one of the following with respect to that pass-through entity's net profit or loss for thattaxable year:

(a) Exclude the pass-through entity's net profit or loss from the consolidated federaltaxable income of the affiliated group and, for the purpose of making the computationsrequired in divisions (R) through (Y) of Section 203.5, exclude the property, payroll, andgross receipts of the pass-through entity in the computation of the affiliated group's netprofit sitused to a municipal corporation. If the entity's net profit or loss is so excluded, theentity shall be subject to taxation as a separate taxpayer on the basis of the entity's netprofits that would otherwise be included in the consolidated federal taxable income of theaffiliated group.

(b) Include the pass-through entity's net profit or loss in the consolidated federaltaxable income of the affiliated group and, for the purpose of making the computationsrequired in divisions (R) through (Y) of Section 203.5, include the property, payroll, andgross receipts of the pass-through entity in the computation of the affiliated group's netprofit sitused to a municipal corporation. If the entity's net profit or loss is so included, theentity shall not be subject to taxation as a separate taxpayer on the basis of the entity's netprofits that are included in the consolidated federal taxable income of the affiliated group.

(4) If the net profit or loss of a pass-through entity having less than eighty percent of thevalue of its ownership interest owned or controlled, directly or indirectly, by an affiliatedgroup of corporations is included in that affiliated group's consolidated federal taxableincome for a taxable year, all of the following shall apply:


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(a) The corporation filing the consolidated municipal income tax return shall excludethe pass-through entity's net profit or loss from the consolidated federal taxable income ofthe affiliated group and, for the purposes of making the computations required in divisions(R) through (Y) of Section 203.5, exclude the property, payroll, and gross receipts of thepass-through entity in the computation ofthe affiliated group's net profit sitused to the City;

(b) The pass-through entity shall be subject to the City income taxation as aseparate taxpayer in accordance with this chapter on the basis of the entity's net profitsthat would otherwise be included in the consolidated federal taxable income of theaffiliated group.

(W) Corporations filing a consolidated City income tax return shall make the computationsrequired under divisions (R) through (Y) of Section 203.5 by substituting "consolidatedfederal taxable income attributable to" for "net profit from" wherever "net profit from"appears in that section and by substituting "affiliated group of corporations" for "taxpayer"wherever "taxpayer" appears in that section.

(X) Each corporation filing a consolidated City income tax return is jointly and severallyliable for any tax, interest, penalties, fines, charges, or other amounts imposed by the Cityin accordance with this chapter on the corporation, an affiliated group of which thecorporation is a memberfor any portion of the taxable year, or any one or more membersof such an affiliated group.

(Y) Corporations and their affiliates that made an election or entered into an agreementwith the City before January 1, 2016, to file a consolidated or combined tax return with theCity may continue to file consolidated or combined tax returns in accordance with suchelection or agreement for taxable years beginning on and after January 1, 2016.

SECTION 203.6 CREDIT FOR TAX PAID TO OTHER MUNICIPALITIES.

(A) Every individual taxpayer domiciled in the City who is required to and does pay, or hasacknowledged liability for, a municipal tax to another municipality on or measured by thesame income, qualifying wages, commissions, net profits or other compensation taxableunder this chapter may claim a nonrefundable credit upon satisfactory evidence of the taxpaid to the other municipality. Subject to division (C) of this section, the credit shall notexceed the tax due the City under this chapter.

(B) The City shall grant a credit against its tax on income to a resident of the City whoworks in a joint economic development zone created under Section 715.691 or a jointeconomic development district created under Section 715.70, 715.71, or 715.72 of theOhio Revised Code to the same extent that it grants a credit against its tax on income to itsresidents who are employed in another municipal corporation.

(C) If the amount of tax withheld or paid to the other municipality is less than the amountof tax required to be withheld or paid to the other municipality, then for purposes of division(A) of this section, "the income, qualifying wages, commissions, net profits or othercompensation" subject to tax in the other municipality shall be limited to the amount


computed by dividing the tax withheld or paid to the other municipality by the tax rate forthat municipality.

SECTION 203.7 ESTIMATED TAXES.

(A) As used in this section:

(1) "Estimated taxes" means the amount that the taxpayer reasonably estimates to be thetaxpayer's tax liability for the City's income tax for the current taxable year.

(2) "Tax liability" means the total taxes due to the City for the taxable year, after allowingany credit to which the taxpayer is entitled, and after applying any estimated tax payment,withholding payment, or credit from another taxable year.

(B)(1) Every taxpayer shall make a declaration of estimated taxes for the current taxableyear, on the form prescribed by the Tax Administrator, if the amount payable as estimatedtaxes is at least $200. For the purposes of this section:

(a) Taxes withheld for the City from qualifying wages shall be considered as paid tothe City in equal amounts on each payment date unless the taxpayer establishes the dateson which all amounts were actually withheld, in which case they shall be considered aspaid on the dates on which the amounts were actually withheld.

(b) An overpayment of tax applied as a credit to a subsequent taxable year isdeemed to be paid on the date of the postmark stamped on the cover in which thepayment is mailed or, if the payment is made by electronic funds transfer, the date thepayment is submitted. As used in this division, "date of the postmark" means, in the eventthere is more than one date on the cover, the earliest date imprinted on the cover by thepostal service.

(2) Taxpayers filing joint returns shall file joint declarations of estimated taxes. A taxpayermay amend a declaration under rules prescribed by the Tax Administrator. A taxpayerhaving a taxable year of less than twelve months shall make a declaration under rulesprescribed by the Tax Administrator.

(3) The declaration of estimated taxes shall be filed on or before the date prescribed forthe filing of municipal income tax returns under division (G) of Section 203.5 or on orbefore the fifteenth (15th) day of the fourth month after the taxpayer becomes subjectto taxfor the first time.

(4) Taxpayers reporting on a fiscal year basis shall file a declaration on or before thefifteenth (15th) day ofthe fourth month after the beginning ofeach fiscal year or period.

(5) The original declaration or any subsequent amendment may be increased ordecreased on or before any subsequent quarterly payment day as provided in this section.


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(C)(1) The required portion of the tax liability for the taxable year that shall be paid throughestimated taxes made payable to the City, including the application of tax refunds toestimated taxes and withholding on or before the applicable payment date, shall be asfollows:

(a) On or before the fifteenth (15th) day ofthe fourth month after the beginning ofthetaxable year, twenty-two and one-half (22.5) percent of the tax liability for the taxable year;

(b) On or before the fifteenth (15th) day of the sixth month after the beginning of thetaxable year, forty-five (45) percent of the tax liability for the taxable year;

(c) On orbefore the fifteenth (15th) day of the ninth month after the beginning of thetaxable year, sixty-seven and one-half (67.5) percent of the tax liability for the taxable year;

(d) On or before the fifteenth (15th) day of the twelfth month of the taxable year,ninety percent (90%) of the tax liability for the taxable year.

(2) When an amended declaration has been filed, the unpaid balance shown due on theamended declaration shall be paid in equal installments on or before the remainingpayment dates.

(3) On or before the fifteenth (15th) day of the fourth month of the year following that forwhich the declaration or amended declaration was filed, an annual return shall be filed andany balance which may be due shall be paid with the return in accordance with Section718.05 of the Ohio Revised Code.

(D)(1) In the case of any underpayment of any portion of a tax liability, penalty and interestmay be imposed pursuant to Section 203.18 upon the amount of underpayment for theperiod of underpayment, unless the underpayment is due to reasonable cause asdescribed in division (E) of this section. The amount of the underpayment shall bedetermined as follows:

(a) For the first payment of estimated taxes each year, twenty-two and one-halfpercent (22.5%) of the tax liability, less the amount of taxes paid by the date prescribed forthat payment;

(b) For the second payment of estimated taxes each year, forty-five percent (45%)of the tax liability, less the amount of taxes paid by the date prescribed for that payment;

(c) For the third payment of estimated taxes each year, sixty-seven and one-halfpercent (67.5%) of the tax liability, less the amount of taxes paid by the date prescribed forthat payment;

(d) For the fourth payment of estimated taxes each year, ninety percent (90%) ofthe tax liability, less the amount of taxes paid by the date prescribed for that payment.

(2) The period of the underpayment shall run from the day the estimated payment wasrequired to be made to the date on which the payment is made. For purposes of this


section, a payment of estimated taxes on or before any payment date shall be considereda payment of any previous underpayment only to the extent the payment of estimatedtaxes exceeds the amount of the payment presently required to be paid to avoid anypenalty.

(E) An underpayment of any portion of tax liability determined under division (D) of thissection shall be due to reasonable cause and the penalty imposed by this section shall notbe added to the taxes for the taxable year ifany of the following apply:

(1) The amount of estimated taxes that were paid equals at least ninety percent (90%) ofthe tax liability for the current taxable year, determined by annualizing the income receivedduring the year up to the end of the month immediately preceding the month in which thepayment is due.

(2) The amount of estimated taxes that were paid equals at least one hundred percent ofthe tax liability shown on the return of the taxpayer for the preceding taxable year, providedthat the immediately preceding taxable year reflected a period of twelve months and thetaxpayer filed a return with the City under Section 203.5 for that year.

(3) The taxpayer is an individual who resides in the City but was not domiciled there on thefirst day of January of the calendar year that includes the first day of the taxable year.

SECTION 203.8 ROUNDING OF AMOUNTS.

A person may round to the nearest whole dollar all amounts the person is required to enteron any return, report, voucher, or other document required under this chapter. Anyfractional part of a dollar that equals or exceeds fifty cents shall be rounded to the nextwhole dollar, and any fractional part of a dollar that is less than fifty cents shall be dropped.If a person chooses to round amounts entered on a document, the person shall round allamounts entered on the document.

SECTION 203.9 REQUESTS FOR REFUNDS.

(A) As used in this section, "withholding tax" has the same meaning as in Section 203.18.

(B) Upon receipt of a request for a refund, the Tax Administrator, in accordance with thissection, shall refund to employers, agents of employers, other payers, or taxpayers, withrespect to any income or withholding tax levied by the municipal corporation:

(1) Overpayments of more than ten dollars or more;

(2) Amounts paid erroneously if the refund requested exceeds ten dollars or more.

(C)(1) Except as otherwise provided in this chapter, requests for refund shall be filed withthe Tax Administrator, on the form prescribed by the Tax Administrator within three yearsafter the tax was due or paid, whichever is later. The Tax Administrator may require therequestor to file with the request any documentation that substantiates the requestor'sclaim for a refund.


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(2) On filing of the refund request, the Tax Administrator shall determine the amount ofrefund due and certify such amount to the appropriate municipal corporation official forpayment. Except as provided in division (C)(3) of this section, the administrator shall issuean assessment to any taxpayer whose request for refund is fully or partially denied. Theassessment shall state the amount of the refund that was denied, the reasons for thedenial, and instructions for appealing the assessment.

(3) If a Tax Administrator denies in whole or in part a refund request included within thetaxpayer's originally filed annual income tax return, the Tax Administrator shall notify thetaxpayer, in writing, of the amount of the refund that was denied, the reasons for thedenial, and instructions for requesting an assessment that may be appealed under Section203.21.

(D) A request for a refund that is received after the last day for filing specified in division(C) of this section shall be considered to have been filed in a timely manner if any of thefollowing situations exist:

(1) The request is delivered by the postal service, and the earliest postal service postmarkon the cover in which the request is enclosed is not later than the last day for filing therequest.

(2) The request is delivered by the postal service, the only postmark on the cover in whichthe request is enclosed was affixed by a private postal meter, the date of that postmark isnot later than the last day for filing the request, and the request is received within sevendays of such last day.

(3) The request is delivered by the postal service, no postmark date was affixed to thecover in which the request is enclosed or the date of the postmark so affixed is not legible,and the request is received within seven days of the last day for making the request.

(E) Interest shall be allowed and paid on any overpayment by a taxpayer of any municipalincome tax obligation from the date of the overpayment until the date of the refund of theoverpayment, except that ifany overpayment is refunded within 90 days after the final filingdate of the annual return or 90 days after the completed return is filed, whichever is later,no interest shall be allowed on the refund. For the purpose of computing the payment ofinterest on amounts overpaid, no amount of tax for any taxable year shall be considered tohave been paid before the date on which the return on which the tax is reported is due,without regard to any extension of time for filing that return. Interest shall be paid at theinterest rate described in Section 203.18 (A)(4).

SECTION 203.10 SECOND MUNICIPALITY IMPOSING TAX AFTER TIME PERIOD

ALLOWED FOR REFUND.

(A) Income tax that has been deposited with the City, but should have been deposited withanother municipality, is allowable by the City as a refund but is subject to the three-yearlimitation on refunds.


(B) Income tax that was deposited with another municipality but should have beendeposited with the City is subject to recovery by the City. If the City's tax on that income isimposed after the time period allowed for a refund of the tax or withholding paid to theother municipality, the City shall allow a nonrefundable creditagainst the tax or withholdingthe City claims is due with respect to such income or wages, equal to the tax orwithholding paid to the first municipality with respect to such income or wages.

(C) If the City's tax rate is less than the tax rate in the other municipality, then thenonrefundable credit shall be calculated using the City's tax rate. However, if-the City's taxrate is greater than the tax rate in the other municipality, the tax due in excess of thenonrefundable credit is to be paid to the City, along with any penalty and interest thataccrued during the period of nonpayment.

(D) Nothing in this section permits any credit carryforward.

SECTION 203.11 AMENDED RETURNS.

(A)(1) Ifa taxpayer's tax liability shown on the annual tax return for the City changes as aresult of an adjustment to the taxpayer's federal or state income tax return, the taxpayershall file an amended return with the City. The amended return shall be filed on a formrequired by the Tax Administrator.

(2) Ifa taxpayer intends to file an amended consolidated municipal income tax return, or toamend its type of return from a separate return to a consolidated return, based on thetaxpayer's consolidated federal income tax return, the taxpayer shall notify the TaxAdministrator before filing the amended return.

(B)(1) In the case of an underpayment, the amended return shall be accompanied bypayment of any combined additional tax dueA together with any penalty and interestthereon. If the combined tax shown to be due is ten dollars or less, no payment need bemade. The amended return shall reopen those facts, figures, computations, or attachmentsfrom a previously filed return that are not affected, either directly or indirectly, by theadjustment to the taxpayer's federal or state income tax return only:

(a) to determine the amount of tax that would be due if all facts, figures,computations, and attachments were reopened; or,

(b) if the applicable statute of limitations for civil actions or prosecutions underSection 203.12 has not expired for a previously filed return.

(2) The additional tax to be paid shall not exceed the amount of tax that would be due if allfacts, figures, computations, and attachments were reopened; i.e., the payment shall bethe lesser of the two amounts.

(C)(1) In the case of an overpayment, a request for refund may be filed under this divisionwithin the period prescribed by division (A)(2) of Section 203.12 for filing the amendedreturnA even if it is filed beyond the period prescribed in that division if it otherwiseconforms to the requirements of that division. If the amount of the refund is less than ten


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dollars, no refund need be paid by the City. A request filed under this division shall claimrefund of overpayments resulting from alterations only to those facts, figures,computations, or attachments required in the taxpayer's annual return that are affected,either directly or indirectly, by the adjustment to the taxpayer's federal or state income taxreturn, unless it is also filed within the time prescribed in Section 203.9.

(2) The amount to be refunded shall not exceed the amount of refund that would be due ifall facts, figures, computations, and attachments were reopened. All facts, figures,computations, and attachments may be reopened to determine the refund amount due byinclusion of all facts, figures, computations, and attachments.

(D) Within 60 days after the final determination of any federal or state tax liability affectingthe taxpayer's City's tax liability, that taxpayer shall make and file an amended City returnshowing income subject to the City income tax based upon such final determination offederal or state tax liability. The taxpayer shall pay any additional City income tax showndue thereon or make a claim for refund of any overpayment, unless the tax oroverpayment is less than ten dollars.

SECTION 203.12 LIMITATIONS.

(A)(1) (a) Civil actions to recover municipal income taxes and penalties and interest onmunicipal income taxes shall be brought within the later of:

(i) Three years after the tax was due or the return was filed, whichever islater; or

(ii) One year after the conclusion of the qualifying deferral period, ifany.

(b) The time limit described in division (A)(1)(a) of this section may be extended atany time if both the Tax Administrator and the employer, agent of the employer, otherpayer, or taxpayer consent in writing to the extension. Any extension shall also extend forthe same period of time the time limit described in division (C) of this section.

(2) As used in this section, "qualifying deferral period" means a period of time beginningand ending as follows:

(a) Beginning on the date a person who is aggrieved by an assessment files withthe Upper Arlington Board of Tax Review the request described in Section 203.21. Thatdate shall not be affected by any subsequent decision, finding, or holding by anyadministrative body or court that the Upper Arlington Board of Tax Review did not havejurisdiction to affirm, reverse, or modify the assessment or any part of that assessment.

(b) Ending the later of the sixtieth day after the date on which the final determinationof the Upper Arlington Board of Tax Review becomes final or, ifany party appeals from thedetermination of the Upper Arlington Board of Tax Review, the sixtieth day after the dateon which the final determination of the Upper Arlington Board of Tax Review is eitherultimately affirmed in whole or in part or ultimately reversed and no further appeal of eitherthat affirmation, in whole or in part, or that reversal is available or taken.


(B) Prosecutions for an offense made punishable under a resolution or ordinance imposingan income tax shall be commenced within three years after the commission of the offense,provided that in the case of fraud, failure to file a return, or the omission of twenty-fivepercent (25%) or more of income required to be reported, prosecutions may becommenced within six years after the commission of the offense.

(C) A claim for a refund of municipal income taxes shall be brought within the timelimitation provided in Section 203.9.

(D)(1) Notwithstanding the fact that an appeal is pending, the petitioner may pay all or aportion of the assessment that is the subject of the appeal. The acceptance of a paymentby the City does not prejudice any claim for refund upon final determination of the appeal.

(2) If upon final determination of the appeal an error in the assessment is corrected by theTax Administrator, upon an appeal so filed or pursuant to a final determination of theUpper Arlington Board of Tax Review, of the Ohio board of tax appeals, or any court towhich the decision of the Ohio board of tax appeals has been appealed, so that theresultant amount due is less than the amount paid, a refund will be paid in the amount ofthe overpayment as provided by Section 203.9, with interest on that amount as providedby division (E) of Section 203.9.

(E) No civil action to recover City income tax or related penalties or interest shall bebrought during either of the following time periods:

(1) The period during which a taxpayer has a right to appeal the imposition of that tax orinterest or those penalties;

(2) The period during which an appeal related to the imposition of that tax or interest orthose penalties is pending.

SECTION 203.13 AUDITS.

(A) At or before the commencement of an audit, the Tax Administrator shall provide to thetaxpayer a written description of the roles of the Tax Administrator and of the taxpayerduring the audit and a statement of the taxpayer's rights, including any right to obtain arefund of an overpayment of a tax. At or before the commencement of an audit, the TaxAdministrator shall inform the taxpayer when the audit is considered to have commenced.

(B) Except in cases involving suspected criminal activity, the Tax Administrator shallconduct an audit of a taxpayer during regular business hours and after providingreasonable notice to the taxpayer. A taxpayer who is unable to comply with a proposedtime for an audit on the grounds that the proposed time would cause inconvenience orhardship must offer reasonable alternative dates for the audit.

(C) At all stages of an audit by the Tax Administrator, a taxpayer is entitled to be assistedor represented by an attorney, accountant, bookkeeper, or other tax practitioner. The TaxAdministrator shall prescribe a form by which a taxpayer may designate such a person toassist or represent the taxpayer in the conduct of any proceedings resulting from actions


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by the Tax Administrator. If a taxpayer has not submitted such a form, the TaxAdministrator may accept other evidence, as the Tax Administrator considers appropriate,that a person is the authorized representative of a taxpayer.

A taxpayer may refuse to answer any questions asked by the person conducting an audituntil the taxpayer has an opportunity to consult with the taxpayer's attorney, accountant,bookkeeper, or other tax practitioner.

This division does not authorize the practice of law by a person who is not an attorney.

(D) A taxpayer may record, electronically or otherwise, the audit examination.

(E) The failure of the Tax Administrator to comply with a provision of this section shallneither excuse a taxpayer from payment of any taxes owed by the taxpayer nor cure anyprocedural defect in a taxpayer's case.

(F) If the Tax Administrator fails to substantially comply with the provisions of this section,the Tax Administrator, upon application by the taxpayer, shall excuse the taxpayer frompenalties and interest arising from the audit.

SECTION 203.14 SERVICE OF ASSESSMENT.


(1) "Last known address" means the address the Tax Administrator has at the time adocument is originally sent by certified mail, or any address the Tax Administrator canascertain using reasonable means such as the use of a change of address service offeredby the postal service or an authorized delivery service under Section 5703.056 of the OhioRevised Code.

(2) "Undeliverable address" means an address to which the postal service or an authorizeddelivery service under Section 5703.056 of the Ohio Revised Code is not able to deliver anassessment of the Tax Administrator, except when the reason for non-delivery is becausethe addressee fails to acknowledge or accept the assessment.

(B) Subject to division (C) of this section, a copy of each assessment shall be served uponthe person affected thereby either by personal service, by certified mail, or by a deliveryservice authorized under Section 5703.056 of the Ohio Revised Code. With thepermission of the person affected by an assessment, the Tax Administrator may deliverthe assessment through alternative means as provided in this section, including, but notlimited to, delivery by secure electronic mail.

(C)(1) (a) If certified mail is returned because of an undeliverable address, a TaxAdministrator shall utilize reasonable means to ascertain a new last known address,including the use of a change of address service offered by the postal service or anauthorized delivery service under Section 5703.056 of the Ohio Revised Code. If the TaxAdministrator is unable to ascertain a new last known address, the assessment shall besent by ordinary mail and considered served. If the ordinary mail is subsequently returned


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because of an undeliverable address, the assessment remains appealable within 60 daysafter the assessment's postmark.

(b) Once the Tax Administrator or other City official, or the designee of either,serves an assessment on the person to whom the assessment is directed, the person mayprotest the ruling of that assessment by filing an appeal with the Upper Arlington Board ofTax Review within 60 days after the receipt of service. The delivery of an assessment ofthe Tax Administrator under division (C)(1)(a) of this section is prima facie evidence thatdelivery is complete and that the assessment is served.

(2) If mailing of an assessment by a Tax Administrator by certified mail is returned forsome cause other than an undeliverable address, the Tax Administrator shall resend theassessment by ordinary mail. The assessment shall show the date the Tax Administratorsends the assessment and include the following statement:

"This assessment is deemed to be served on the addressee under applicable law ten daysfrom the date this assessment was mailed by the Tax Administrator as shown on theassessment, and all periods within which an appeal may be filed apply from and after thatdate."

Unless the mailing is returned because of an undeliverable address, the mailing of thatinformation is prima facie evidence that delivery of the assessment was completed tendays after the Tax Administrator sent the assessment by ordinary mail and that theassessment was served.

If the ordinary mail is subsequently returned because of an undeliverable address, the TaxAdministrator shall proceed under division (C)(1)(a) of this section. A person maychallenge the presumption of delivery and service under this division in accordance withdivision (D) of this section.

(D)(1) A person disputing the presumption of delivery and service under division (C) of thissection bears the burden of proving by a preponderance of the evidence that the addressto which the assessment was sent by certified mail was not an address with which theperson was associated at the time the Tax Administrator originally mailed the assessment.For the purposes of this section, a person is associated with an address at the time theTax Administrator originally mailed the assessment if, at that time, the person wasresiding, receiving legal documents, or conducting business at the address; or if, beforethat time, the person had conducted business at the address and, when the assessmentwas mailed, the person's agent or the person's affiliate was conducting business at theaddress. For the purposes of this section, a person's affiliate is any other person that, atthe time the assessment was mailed, owned or controlled at least 20 percent, asdetermined by voting rights, of the addressee's business.

(2) If a person elects to appeal an assessment on the basis described in division (D)(1) ofthis section, and if that assessment is subject to collection and is not otherwise appealable,the person must do so within 60 days after the initial contact by the Tax Administrator orother City official, or the designee of either, with the person. Nothing in this divisionprevents the Tax Administrator or other official from entering into a compromise with the


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person ifthe person does not actually file such an appeal with the Upper Arlington Boardof Tax Review.

(E) Nothing in this section prohibits the Tax Administrator or the Tax Administrator'sdesignee from delivering an assessment by a TaxAdministrator by personal service.

(F) Collection actions taken upon any assessment being appealed under division (C)(1)(b)of this section,.including those on which a claim has been delivered for collection, shall bestayed upon the pendency of an appeal under this section.

(Q) Additional regulations as detailed in the Rules and Regulations shall apply.

SECTION 203.15 ADMINISTRATION OF CLAIMS.

(A) As used in this section, "claim" means a claim for an amount payable to the City thatarises pursuant to the City's income tax imposed in accordance with this chapter.

(B) Nothing in this chapter prohibits a Tax Administrator from doing either of the following ifsuch action is in the best interests of the municipal corporation:

(1) Compromise a claim;

(2) Extend for a reasonable period the time for payment of a claim by agreeing to acceptmonthly or other periodic payments.

(C) The Tax Administrator's rejection of a compromise or payment-over-time agreementproposed by a person with respect to a claim shall not be appealable.

(D) A compromise or payment-over-time agreement with respect to a claim shall bebinding upon and shall be to the benefit of only the parties to the compromise oragreement, and shall not eliminate or otherwise affect the liability of any other person.

(E) A compromise or payment-over-time agreement with respect to a claim shall be void ifthe taxpayer defaults under the compromise or agreement or if the compromise oragreement was obtained by fraud or by misrepresentation of a material fact. Any amountthat was due before the compromise or agreement and that is unpaid shall remain due,and any penalties or interest that would have accrued in the absence of the compromise oragreement shall continue to accrue and be due.

SECTION 203.16 TAX INFORMATION CONFIDENTIAL.

(A) Any information gained as a result of returns, investigations, hearings, or verificationsrequired or authorized by this chapter is confidential, and no person shall access ordisclose such information except in accordance with a proper judicial order or inconnection with the performance of that person's official duties or the official business ofthe City as authorized by this chapter. The Tax Administrator or a designee thereof mayfurnish copies of returns filed or otherwise received under this chapter and other related


tax information to the internal revenue service, the tax commissioner, and taxadministrators of other municipal corporations.

(B) This section does not prohibit the City from publishing or disclosing statistics in a formthat does not disclose information with respect to particular taxpayers.

SECTION 203.17 FRAUD.

No person shall knowingly make, present, aid, or assist in the preparation or presentationof a false or fraudulent report, return, schedule, statement, claim, or document authorizedor required by City ordinance or state law to be filed with a the Tax Administrator, orknowingly procure, counsel, or advise the preparation or presentation of such report,return, schedule, statement, claim, or document, or knowingly change, alter, or amend, orknowingly procure, counsel or advise such change, alteration, or amendment of therecords upon which such report, return, schedule, statement, claim, or document is basedwith intent to defraud the City or the Tax Administrator.

SECTION 203.18 INTEREST AND PENALTIES.


(1) "Applicable law" means this chapter, the resolutions, ordinances, codes, directives,instructions, and rules adopted by the City provided they impose or directly or indirectlyaddress the levy, payment, remittance, or filing requirements of the City.

(2 ) "Federal short-term rate" means the rate of the average market yield on outstandingmarketable obligations of the United States with remaining periods to maturity of threeyears or less, as determined under Section 1274 of the Internal Revenue Code, for July ofthe current year.

(3) "Income tax," "estimated income tax," and "withholding tax" means any income tax,estimated income tax, and withholding tax imposed by the City pursuant to applicable law,including at any time before January 1, 2016.

(4) "Interest rate as described in division (A) of this section" means the federal short-termrate, rounded to the nearest whole number percent, plus five percent. The rate shall applyfor the calendar year next following the July of the year in which the federal short-term rateis determined in accordance with division (A)(2) of this section.

(5 ) "Return" includes any tax return, report, reconciliation, schedule, and other documentrequired to be filed with a the Tax Administrator or the City by a taxpayer, employer, anyagent of the employer, or any other payer pursuant to applicable law, including at any timebefore January 1, 2016.

(6) "Unpaid estimated income tax" means estimated income tax due but not paid by thedate the tax is required to be paid under applicable law.


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(7) "Unpaid income tax" means income tax due but not paid by the date the income tax isrequired to be paid under applicable law.

(8) "Unpaid withholding tax" means withholding tax due but not paid by the date thewithholding tax is required to be paid under applicable law.

(9) "Withholding tax" includes amounts an employer, any agent of an employer, or anyother payer did not withhold in whole or in part from an employee's qualifying wages, butthat, under applicable law, the employer, agent, or other payer is required to withhold froman employee's qualifying wages.

(B)(1) This section applies to the following:

(a) Any return required to be filed under applicable law for taxable years beginningon or after January 1, 2016;

(b) Income tax, estimated income tax, and withholding tax required to be paid orremitted to the City on or after January 1, 2016.

(2) This section does not apply to returns required to be filed or payments required to bemade before January 1, 2016, regardless of the filing or payment date. Returns required tobe filed or payments required to be made before January 1, 2016, but filed or paid afterthat date shall be subject to the ordinances or rules and regulations, as adopted beforeJanuary 1, 2016, of the City to which the return is to be filed or the payment is to be made.

(C) Should any taxpayer, employer, agent of the employer, or other payer for any reasonfails, in whole or in part, to make timely and full payment or remittance of income tax,estimated income tax, or withholding tax or to file timely with the-City any return required tobe filed, the following penalties and interest shall apply:

(1) Interest shall be imposed at the rate described in division (A) of this section, perannum, on all unpaid income tax, unpaid estimated income tax, and unpaid withholdingtax.

(2) (a) With respect to unpaid income tax and unpaid estimated income tax, the Citymay impose a penalty equal to fifteen percent (15%) of the amount not timely paid.

(b) With respect to any unpaid withholding tax, the City may impose a penalty equalto fifty percent (50%) of the amount not timely paid.

(3) With respect to returns other than estimated income tax returns, the City may impose apenalty of $25 for each failure to timely file each return, regardless of the liability shownthereon for each month, or any fraction thereof, during which the return remains unfiledregardless of the liability shown thereon. The penalty shall not exceed $150 for eachfailure.


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(D) Nothing in this section requires the City to refund or credit any penalty, amount ofinterest, charges, or additional fees that the City has properly imposed or collected beforeJanuary 1,2016.

(E) Nothing in this section limits the authority of the City to abate or partially abatepenalties or interest imposed under this section when the Tax Administrator determines, inthe Tax Administrator's sole discretion, that such abatement is appropriate.

(F) By the 31st day of October of each year the City shall publish the rate described indivision (A) of this section applicable to the next succeeding calendar year.

(G) The City may impose on the taxpayer, employer, any agent of the employer, or anyother payer the City's post-judgment collection costs and fees, including attorney's fees.

SECTION 203.19 AUTHORITY OF TAX ADMINISTRATOR; VERIFICATION OFINFORMATION.

Authority.

(A) Nothing in this chapter shall limit the authority of the Tax Administrator to perform anyof the following duties or functions, unless the performance of such duties or functions isexpressly limited by a provision of the Ohio Revised Code:

(1) (a) Exercise all powers whatsoever of an query nature as provided by law,including, the right to inspect books, accounts, records, memorandums, and federal andstate income tax returns, to examine persons under oath, to issue orders or subpoenas forthe production of books, accounts, papers, records, documents, and testimony, to takedepositions, to apply to a court for attachment proceedings as for contempt, to approvevouchers for the fees of officers and witnesses, and to administer oaths.

(b) The powers referred to in this division of this section shall be exercised by theTax Administrator only in connection with the performance of the duties respectivelyassigned to the Tax Administrator under the City's income tax code;

(2) Appoint agents and prescribe their powers and duties;

(3) Confer and meet with officers of other municipal corporations and states and officers ofthe United States on any matters pertaining to their respective official duties as providedby law;

(4) Exercise the authority provided by law, including orders from bankruptcy courts, relativeto remitting or refunding taxes, including penalties and interest thereon, for any reasonoverpaid. In addition, the Tax Administrator may investigate any claim of overpayment and,if the Tax Administrator finds that there has been an overpayment, make a writtenstatement of the Tax Administrator's findings, and approve and issue a refund payable tothe taxpayer, the taxpayer's assigns, or legal representative as provided in this chapter;


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(5) Exercise the authority provided by law relative to consenting to the compromise andsettlement of tax claims;

(6) Exercise the authority provided by law relative to the use of alternative apportionmentmethods by taxpayers in accordance with Section 203.3;

(7) (a) Make all tax findings, determinations, computations, and orders the TaxAdministrator is by law authorized and required to make and, pursuant to time limitationsprovided by law, on the Tax Administrator's own motion, review, re-determine, or correctany tax findings, determinations, computations, or orders the Tax Administrator has made.

(b) If an appeal has been filed with the Upper Arlington Board of Tax Review orother appropriate tribunal, the Tax Administrator shall not review, re-determine, or correctany tax finding, determination, computation, or order which the Tax Administrator hasmade, unless such appeal or application is withdrawn by the appellant or applicant, isdismissed, or is otherwise final;

(8) Destroy any or all returns or other tax documents in the manner authorized by law;

(9) Enter into an agreement with a taxpayer to simplify the withholding obligationsdescribed in Section 203.4.

Verification of accuracy of returns and determination of liability.

(B)(1) A Tax Administrator, or any authorized agent or employee thereof may examine thebooks, papers, records, and federal and state income tax returns of any employer,taxpayer, or other person that is subject to, or that the Tax Administrator believes issubject to, the provisions of this chapter for the purpose of verifying the accuracy of anyreturn made or, if no return was filed, to ascertain the tax due under this chapter. Uponwritten request by the Tax Administrator or a duly authorized agent or employee thereof,every employer, taxpayer, or other person subject to this section is required to furnish theopportunity for the Tax Administrator, authorized agent, or employee to investigate andexamine such books, papers, records, and federal and state income tax returns at areasonable time and place designated in the request.

(2) The records and other documents of any taxpayer, employer, or other person that issubject to, or that a Tax Administrator believes is subject to, the provisions of this chaptershall be open to the Tax Administrator's inspection during business hours and shall bepreserved for a period of six years following the end of the taxable year to which therecords or documents relate, unless the Tax Administrator, in writing, consents to theirdestruction within that period, or by order requires that they be kept longer. The TaxAdministrator may require any person, by notice served on that person, to keep suchrecords as the Tax Administrator determines necessary to show whether or not that personis liable, and the extent of such liability, for the income tax levied by the City or for thewithholding of such tax.

(3) The Tax Administrator may examine under oath any person that the Tax Administratorreasonably believes has knowledge concerning any income that was or would have been


returned for taxation or any transaction tending to affect such income. The TaxAdministrator may, for this purpose, compel any such person to attend a hearing orexamination and to produce any books, papers, records, and federal and state income taxreturns in such person's possession or control. The person may be assisted orrepresented by an attorney, accountant, bookkeeper, or other tax practitioner at any suchhearing or examination. This division does not authorize the practice of law by a personwho is not an attorney.

(4) No person issued written notice by the Tax Administrator compelling attendance at ahearing or examination or the production of books, papers, records, or federal or stateincome tax returns under this section shall fail to comply.

Identification information.

(C)(1) Nothing in this chapter prohibits the Tax Administrator from requiring any personfiling a tax document with the Tax Administrator to provide identifying information, whichmay include the person's social security number, federal employer identification number,or other identification number requested by the Tax Administrator. A person required bythe Tax Administrator to provide identifying information that has experienced any changewith respect to that information shall notify the Tax Administrator of the change before, orupon, filing the next tax document requiring the identifying information.

(2) (a) If the Tax Administrator makes a request for identifying information and the TaxAdministrator does not receive valid identifying information within 30 days of making therequest, nothing in this chapter prohibits the Tax Administrator from imposing a penaltyupon the person to whom the request was directed pursuant to Section 203.18, in additionto any applicable penalty described in Section 203.99.

(b) If a person required by the Tax Administrator to provide identifying informationdoes not notify the Tax Administrator of a change with respect to that information asrequired under division (C) of Section 203.19 within 30 days after filing the next taxdocument requiring such identifying information, nothing in this chapter prohibits the TaxAdministrator from imposing a penalty pursuant to Section 203.18.

(c) The penalties provided for under divisions (C)(2)(a) and (b) of this section maybe billed and imposed in the same manner as the tax or fee with respect to which theidentifying information is sought and are in addition to any applicable criminal penaltiesdescribed in Section 203.99 for a violation of Section 203.17 and any other penalties thatmay be imposed by the Tax Administrator by law.

SECTION 203.20 REQUEST FOR OPINION OF THE TAX ADMINISTRATOR.

(A) An "opinion of the Tax Administrator" means an opinion issued under this section withrespect to prospective municipal income tax liability. It does not include ordinarycorrespondence of the Tax Administrator.

(B) A taxpayer may submit a written request for an opinion of the Tax Administrator inaccordance with the Rules and Regulations.


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(C) (1) An opinion of the Tax Administrator shall remain in effect and shall protect thetaxpayer for whom the opinion was prepared and who reasonably relies on it from liabilityfor any taxes, penalty, or interest otherwise chargeable on the activity or transactionspecifically held by the Tax Administrator's opinion to be taxable in a particular manner ornot to be subject to taxation for any taxable years that may be specified in the opinion, oruntil the earliest of the following dates:

(a) The effective date of a written revocation by the Tax Administrator sent to thetaxpayer by certified mail, return receipt requested. The effective date of the revocationshall be the taxpayer's date of receipt or one year after the issuance of the opinion,whichever is later;

(b) The effective date of any amendment or enactment of a relevant section of theOhio Revised Code, uncodified state law, or this chapter that would substantially changethe analysis and conclusion of the opinion of the Tax Administrator;

(c) The date on which a court issues an opinion establishing or changing relevantcase law with respect to the Ohio Revised Code, uncodified state law, or this chapter;

(d) Ifthe opinion of the Tax Administrator was based on the interpretation of federallaw, the effective date of any change in the relevant federal statutes or regulations, or thedate on which a court issues an opinion establishing or changing relevant case law withrespect to federal statutes or regulations;

(e) The effective date of any change in the taxpayer's material facts orcircumstances;

(f) The effective date of the expiration of the opinion, ifspecified in the opinion.

(2) A taxpayer is not relieved of tax liability for any activity or transaction related to arequest for an opinion that contained any misrepresentation or omission of one or morematerial facts.

(D) A Tax Administrator may refuse to offer an opinion on any request received under thissection. Such refusal is not subject to appeal.

(E) An opinion of the Tax Administrator binds the Tax Administrator only with respect to thetaxpayer for whom the opinion was prepared and does not bind the Tax Administrator ofany other municipal corporation.

(F) An opinion of the Tax Administrator issued under this section is not subject to appeal.

SECTION 203.21 BOARD OF TAX REVIEW.

(A)(1) The Upper Arlington Board of Tax Review shall consist of three members. Twomembers shall be appointed by City Council, but such appointees may not be employees,elected officials, or contractors with the City at any time during their term or in the fiveyears immediately preceding the date of appointment. One member shall be appointed by


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the City Manager. This member may be an employee of the City, but may not be thedirector of finance or equivalent officer, or the Tax Administrator or other similar official oran employee directly involved in municipal tax matters, or any direct subordinate thereof.

(2) The term for members of the Upper Arlington Board of Tax Review shall be two years.There is no limit on the number of terms that a member may serve if the member isreappointed by the City Council. The board member appointed by the City Manager shallserve at the discretion of the City Manager.

(3) Members of the Upper Arlington Board of Tax Review appointed by the City Councilmay be removed by the City Council by majority vote for malfeasance, misfeasance, ornonfeasance in office. To remove such a member, the City Council must give the membera copy of the charges against the member and afford the member an opportunity to bepublicly heard in person or by counsel in the member's own defense upon not less thanten days' notice. The decision by the City Council on the charges is final and notappealable.

(4) A member of the Upper Arlington Board of Tax Review who, for any reason, ceases tomeet the qualifications for the position prescribed by this section shall resign immediatelyby operation of law.

(5) A vacancy in an unexpired term shall be filled in the same manner as the originalappointment within 60 days of when the vacancy was created. Any member appointed tofill a vacancy occurring prior to the expiration of the term for which the member'spredecessor was appointed shall hold office for the remainder of such term. No vacancyon the Upper Arlington Board of Tax Review shall impair the power and authority of theremaining members to exercise all the powers of the Upper Arlington Board of TaxReview.

(6) If a member is temporarily unable to serve on the Upper Arlington Board of Tax Reviewdue to a conflict of interest, illness, absence, or similar reason, the City Council or CityManager that appointed the member shall appoint another individual to temporarily serveon the Upper Arlington Board of Tax Review in the member's place. The appointment ofsuch an individual shall be subject to the same requirements and limitations as areapplicable to the appointment of the member temporarily unable to serve.

(B) Whenever a Tax Administrator issues an assessment, the Tax Administrator shallnotify the taxpayer in writing at the same time of the taxpayer's right to appeal theassessment, the manner in which the taxpayer may appeal the assessment, and theaddress to which the appeal should be directed.

(C) Any person who has been issued an assessment may appeal the assessment to theUpper Arlington Board of Tax Review by filing a request with the Upper Arlington Board ofTax Review. The request shall be in writing, shall specify the reason or reasons why theassessment should be deemed incorrect or unlawful, and shall be filed within 60 days afterthe taxpayer receives the assessment.


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(D) The Upper Arlington Board of Tax Review shall schedule a hearing to be held within 60days after receiving an appeal of an assessment under division (C) of this section, unlessthe taxpayer requests additional time to prepare or waives a hearing. If the taxpayer doesnot waive the hearing, the taxpayer may appear before the Upper Arlington Board of TaxReview and may be represented by an attorney at law, certified public accountant, or otherrepresentative. The Upper Arlington Board of Tax Review may allow a hearing to becontinued as jointly agreed to by the parties. In such a case, the hearing must becompleted within 120 days after the first day of the hearing unless the parties agreeotherwise.

(E) The Upper Arlington Board of Tax Review may affirm, reverse, or modify the TaxAdministrator's assessment or any part of that assessment. The Upper Arlington Board ofTax Review shall issue a final determination on the appeal within 90 days after the UpperArlington Board of Tax Review's final hearing on the appeal, and send a copy of its finaldetermination by ordinary mail to all of the parties to the appeal within 15 days after issuingthe final determination. The taxpayer or the Tax Administrator may appeal the UpperArlington Board of Tax Review's final determination as provided in Section 5717.011 of theOhio Revised Code.

(F) The Upper Arlington Board of Tax Review created pursuant to this section shall adoptrules governing its procedures and shall keep a record of its transactions. Such recordsare not public records available for inspection under Section 149.43 of the Ohio RevisedCode. Hearings requested by a taxpayer before a Upper Arlington Board of Tax Reviewcreated pursuant to this section are not meetings of a public body subject to Section121.22 of the Ohio Revised Code.

SECTION 203.22 AUTHORITY TO CREATE RULES AND REGULATIONS.

Nothing in this chapter prohibits the City Council, or a Tax Administrator pursuant toauthority granted to the administrator by resolution or ordinance, to adopt rules toadminister an income tax imposed by the City in accordance with this chapter. Such rulesshall not conflict with or be inconsistent with any provision of this chapter. Taxpayers arehereby required to comply not only with the requirements of this chapter, but also to comply with the Rulesand Regulations.

All rules adopted under this section shall be published and posted on the internet.

SECTION 203.23 RENTAL AND LEASED PROPERTY.

(A) All property owners of real property located in the City, who rent or otherwise lease thesame, or any part thereof, to any person for residential dwelling purposes, includingapartments, rooms and other rental accommodations, during any calendar year, or partthereof, commencing with the effective date of this section, shall file with the TaxAdministratoron or before the January 31 first following such calendar year a written reportdisclosing the name, address and also telephone number, if available, of each tenantknown to have occupied on December 31 during such calendar year such apartment, roomor other residential dwelling rental property.


(B) The Tax Administrator may order the appearance before him, or his duly authorizedagent, of any person whom he believes to have any knowledge of the name, address andtelephone number of any tenant of residential rental real property in the City. The TaxAdministrator, or his duly authorized agent, is authorized to examine any person, underoath, concerning the name, address and telephone number of any tenant of residential realproperty located in the City. The Tax Administrator, or his duly authorized agent, maycompel the production of papers and records and the attendance of all personal beforehim, whether as parties or witnesses, whenever he believes such person has knowledge ofthe name, address and telephone number of any tenant of residential real property in theCity.

(C) Any property owner or person that violates one or more of the following shall besubject to Section 203.99 of this chapter:

(1) Fails, refuses or neglects to timely file a written report required by subsection (a)hereof; or

(2) Makes an incomplete or intentionally false written report required by subsection (a)hereof; or

(3) Fails to appear before the Tax Administrator or any duly authorized agent and toproduce and disclose any tenant information pursuant to any order or subpoena of the TaxAdministrator as authorized in this section; or

(4) Fails to comply with the provisions of this section or any order or subpoena of the TaxAdministrator.

SECTION 203.24 SAVINGS CLAUSE.

This chapter shall not apply to any person, firm or corporation, or to any property as towhom or which it is beyond the power of Council to impose the tax herein provided for.Any sentence, clause, section or part of this chapter or any tax against or exceptiongranted any individual or any of the several groups of persons, or forms of incomespecified herein if found to be unconstitutional, illegal or invalid, such unconstitutionality,illegality or invalidity shall affect only such clause, sentence, section or part of this chapterand shall not affect or impair any of the remaining provisions, sentences, clauses, sectionsor other parts of this chapter. It is hereby declared to be the intention of Council that thischapter would have been adopted had such unconstitutional, illegal or invalid sentence, orpart hereof, not been included therein.

SECTION 203.25 COLLECTION OF TAX AFTER TERMINATION OF ORDINANCE.

(A) This chapter shall continue effective insofar as the levy of taxes is concerned untilrepealed, and insofar as the collection of taxes levied hereunder and actions orproceedings for collecting any tax so levied or enforcing any provisions of this chapter areconcerned, it shall continue effective until all of said taxes levied hereunder in theaforesaid periods are fully paid and any and all suits and prosecutions for the collection ofsaid taxes or for the punishment of violations of this chapter shall have been fully


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terminated, subject to the limitations contained in Section 203.12 and Section 203.99hereof.

(B) Annual returns due for all or any part of the last effective year of this chapter shall bedue on the date provided in Sections 203.5 and Section 203.4 of this chapter as thoughthe same were continuing.

SECTION 203.26 ADOPTION OF RITA RULES AND REGULATIONS.

The City hereby adopts the Regional Income Tax Agency (RITA) Rules & Regulations,including amendments that may be made from time to time, for use as the City's IncomeTax Rules and Regulations. In the event of a conflict with any provision(s) of Chapter 203of the Codified Ordinances and the RITA Rules & Regulations, the provisions of Chapter203 will supersede. Until and if the contractual relationship between the City and RITAceases, Section 203.26 will supersede all other provisions within Chapter 203 regardingpromulgation of rules and regulations by the Tax Administrator.

SECTION 203.99 VIOLATIONS; PENALTIES.

(A) Whoever violates Section 203.17, division (A) of Section 203.16, or Section 203.4 byfailing to remit the City income taxes deducted and withheld from an employee, shall beguilty of a misdemeanor of the first degree and shall be subject to a fine of not more than$1,000 or imprisonment for a term of up to six months, or both. If the individual thatcommits the violation is an employee, or official, of the City, the individual is subject todischarge from employment or dismissal from office.

(B) Any person who discloses information received from the Internal Revenue Service inviolation of division (A) of Section 203.16 shall be guilty of a felony of the fifth degree andshall be subject to a fine of not more than $5,000 plus the costs of prosecution, orimprisonment for a term not exceeding five years, or both. If the individual that commitsthe violation is an employee, or official, of the City, the individual is subject to dischargefrom employment or dismissal from office.

(C) Each instance of access or disclosure in violation of division (A) of Section 203.16constitutes a separate offense.

(D) If not otherwise specified herein, no person shall:

(1) Fail, neglect or refuse to make any return or declaration required by this chapter;

(2) File any incomplete or false return;

(3) Fail, neglect or refuse to pay the tax, penalties or interest imposed by this chapter;

(4) Refuse to permit the Tax Administrator or any duly authorized agent or employee toexamine his books, records, papers and federal and state income tax returns relating tothe income or net profits of a taxpayer;


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(5) Fail to appear before the Tax Administrator and to produce his books, records, papersor federal and state income tax returns relating to the income or net profits of a taxpayerupon order or subpoena of the Tax Administrator;

(6) Refuse to disclose to the Tax Administrator any information with respect to the incomeor net profits of a taxpayer;

(7) Fail to comply with the provisions of this chapter or any order or subpoena of the TaxAdministrator authorized hereby;

(8) Give to an employer false information as to his true name, correct social securitynumber, and residence address, or fail to promptly notify an employer of any change inresidence address and date thereof;

(9) Attempt to do anything whatsoever to avoid the payment of the whole or any part of thetax, penalties or interest imposed by this chapter.

(E) Any person who violates any of the provisions in Section 203.99 (D) shall be subject tothe penalties provided for in Section 203.99 (A) of this chapter.

SECTION 4: That CO. Section 202.99 is hereby amended to read, as follows:

§ 202205.99 - PENALTIES.

(A) (1) Except as otherwise provided herein, a violation of CO. § 202205.90(A). (B),or (D) shall be a minor misdemeanor as defined in CO. ch. 501. The courtshall sentence the offender to a fine of not less than fifty dollars ($50.00) foreach violation.

(2) If the offender has previously been convicted of or pleaded guilty to a violationof CO. § 202205.90(A), (B), (C), or (D), a violation of CO. § 202205.90(A),(B), or (D) shall be a misdemeanor of the third degree as defined in CO. ch.501. The court shall sentence the offender to a fine of not less than one

hundred dollars ($100.00) for each violation.

(B) (1) Except as otherwise provided herein, a violation of CO. § 202205.90(C) shallbe a misdemeanor of the third degree as defined in CO. ch. 501. The courtshall sentence the offender to a fine of not less than one hundred dollars

($100.00) for each violation.

(2) If the offender has previously been convicted of or pleaded guilty to a violationof CO. § 202205.90(A). (B), (C), or (D), a violation of CO. § 202205.90(C)shall be a misdemeanor of the first degree as defined in CO. ch. 501. Thecourt shall sentence the offender to a fine of not less than two hundred dollars

($200.00) for each violation.

SECTION 5: That the City Clerk is hereby directed to renumber CO. Chapter 202 -Transient Occupancy Tax to become CO. Chapter 205 - Transient


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Occupancy Tax and to renumber all of the sections contained thereinaccordingly.

SECTION 6: That CO. Chapter 156 is hereby amended to read, as follows:

CHAPTER 156

BOARD OF TAX APPEALS REVIEW

§156.01 ESTABLISHMENT AND MEMBERSHIP

(A) There is hereby established and created the Upper Arlington Board of Tax AppealsReview pursuant to Section 718.11 of the Ohio Revised Code.

(B) The details concerning the membership, organization, duties, and authority of theUpper Arlington Board of Tax Review are set forth in CO. 203.21. Membership: Tho Boardshall consist of five members, all Residents of tho City of Uppor Arlington, appointed by CityCouncil. All members must possess general tax knowledge or be sufficiently versed onmunicipal tax related issues.

(C) Appointments to the Board shall bo for four year terms, provided that the term of twoof the members appointed to tho first Board shall be for two years and threo of tho membersappointed to the first Board shall be for four years.

In the event that a vacancy shall occur during the term of any member, his or hor successorshall be appointed for the unexpired portion of said term.

§156.02 ORGANIZATION AND PROCEDURE

(A) The Board shall establish its own rules of organization and procedure for the conductof its business, elect its own chairperson and koop a record of its proceedings. Such rocordsof proceedings and hearings are not public records available for inspection under Section149.43 of the Ohio Revised Code. Hearings requested by a taxpayer bofore tho Board arenot meetings of a public body subject to provisions of Section 121.22 of the Ohio RevisedCode.

{B) A majority of its members shall constitute a quorum for tho conduct ofany business tocome before the Board.

§156.03 PURPOSE AND DUTIES

(A) The Board shall hear and pass on appeals from any ruling or decision of the TaxAdministrator pursuant to CO. § 201 27 and Ohio Revised Code § 718.11.

(B) Tho Board shall schedule a hearing within forty fivo (45) days after receiving therequest, unless the taxpayer waivoc tho hearing. If the hearing is notwaived, tho taxpayermay appear before the Board with ropresontation from an attorney at law, oortifiod publicaccountant, or other roprosontative.


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(G)—The Board may affirm, reverse or modify the Tax Administrator's decision or anypart of that decision. The Board shall issue a decision on the appeal within ninety (90)days after the Board's final hearing on appeal, and shall send notice of its decision byordinary mail to the petitioner within fifteen (15) days after issuing the decision.

(D) The Board may affirm, reverse or modify the Tax Administrator's decision or any partof that decision. The Board shall issue a decision on the appeal within ninety (90) days afterthe Board's final hearing on appeal, and shall send notice of its decision by ordinary mail tothe petitioner within fifteen (15) days after issuing the decision.

SECTION 7. That Sections 3 and 6 of this ordinance shall become effective on

January 1,2016.

SECTION 8. That this ordinance shall take effect at the earliest date allowed bylaw.

PASSED: November 23,2015

President of Court

ATTEST?lerk

I, Ashley Ellrod, City Clerk of Upper Arlington, Ohio,do hereby certify that the above is a true andcorrect copy.

CERTiFICATMF POSTING

I, Ashley Ellrod, City Clerk of the City of Upper Arlington, Ohio, dohereby certify that publication of the foregoing was made by posting atrue copy of Ordinance No. 76-2015 at the most public place in saidcorporation as determined by the Council, the Municipal Building, 3600Tremont Road, for a period of ten (10) days commencing November 24,2015.


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(kMnSMUCity Clerk ojthe City ofUpper Arlington"

Vote Slip

Sponsor: Mr. YassenoffDate Introduced: November 9,2015

Legal Ad:Newspaper

Reading Date(s): November 9,2015: November 23,2015

Voting Aye: Adams, Greenhiil,Johnson, Schadek, Yassenoffand Leach

Voting Nay:Abstain:

Absent DeCapua

Date of Passage: November 23,2015

City Council Conference Session/Other Review: November 16,2015

Other Thirty Day Clause;

Documents

limitations specified in Chapter 718 of the Revised Code;...with the provisions and limitations specified in [Chapter 718];" and WHEREAS, ' based on a review of H. B. 5 and model tax